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BELL iC
TELEPHONE QUARTERLY

VOLUME VIII, 1929

INFORMATION DEPARTMENT

AMERICAN TELEPHONE AND TELEGRAPH COMPANY

195 Broadway, New York

uound
Periodical

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694004

BELL TELEPHONE QUARTERL^

VOLUME VUl J92i9^.[ V ', ..!

TABLE OF CONTENTS
JANUARY, 1929

Communication, by Walter 8. Gifford 1

Standardization in the Bell System, by H. 8. bsborne . . . . 9
1800-Pair Cable becomes a Bell System Standard, by F. L.

Rhodes 25

Counterless Business Offices, by R. 8. Rankin ............. 30

1928 — An Economic Review and Outlook, by F. E. Richter . . 33
The Key-Town Plan of Selling by Telephone, by Richard

Whitcomb 47

Notes on Recent Occurrences ' 59

Abstracts of Recent Technical Papers from Bell System Sources 74

Organization Changes 86

APRIL, 1929

The Dial Office "Cutover," by A. E. VanHagan 95

Seven Billion Toll Rates IO7

Long Toll Cable Construction and Maintenance, by L. ' N.

8toskopf 215

An Index of General Business Activity, by P. J. Weber '. '. . . 124

Standardization in the Bell System— II, by H. 8. Osborne . . 132

Abstracts of Recent Technical Papers from Bell System Sources 153

Notes on Recent Ocurrences 163

Organization Changes ...!... 172

JULY, 1929

Extension of Telephone Service to Ships at Sea, by Lloyd Es-

penschied and William Wilson I75

Telephone Typewriters and Auxiliary Arrangements, by R. D.

Parker jgj

An Interview with President W. S. Gifford ................ 195

Bell System Buildings— An Interpretation, bv R. 8. Coe ... 201

World's Telephone Statistics ' 218

Abstracts of Recent Technical Papers from Bell System Sources 231
Notes on Recent Occurrences 244

OCTOBER, 1929

Short Waves and Long Waves in Transatlantic Radio Teleph-
ony, by Ralph Bown 253

The Straight-Line Depreciation Accounting Practice of Tele-
phone Companies in the United States, by A. B. Crunden

and D. R. Belcher 259

Installation of New Types of Buried Toll Cable . . . ' . . . . . . . . 296

Long Distance Telephony in Europe, by R. W. King 305

1929 Convertible Bond Offer of the American Telephone and

Telegraph Company, by H. Blair-8mith 316

Listening Device Aids in Combating the Fruit Fly Pest in

Florida, by D. G. Blattner 328

Abstracts of Recent Technical Papers from Bell System Sources 334
Notes on Recent Occurrences ^ 344

Bell Telephone Quarterly

A MEDIUM OF SUGGESTION
AND A RECORD OF PROGRESS

Published quarterly for the Bell System by the American Telephone
and Telegraph Company

Subtcription, $1.50 per year, in United States and Canada; tingle copies, SOjcenU

Address all communications to

INFORMATION DEPARTMENT
AMERICAN TELEPHONE AND TELEGRAPH COMPANY

195 Broadway, New York

VoL VIII JANUARY, 1929 No. 1

Communicalion

Address of Walter S. Gifford, President of American

Telephone and Telegraph Company. Before the

Conference of Major Industries New York,

October 24, 1928.

FROM the earliest civilizations of which we have
record until well after the formation of the
United States the commTinication art remained
practically the same. It depended essentially on the
speed of man or horse and sailboat, with here and there
the limited use of beacon and smoke signals or sema-
phores. Then suddenly, early in the last century, came
a sudden and dramatic change.

Let me read to you a sentence or two from that de-
lightful New York diarist, Philip Hone. On June 2,
1841, he writes:

"At eleven o'clock yesterday the President sent in his message
to Congress. The rapidity with which the message was brought
on by the railroad exceeds all precedent; it absolutely seems like
flying. It left Washington at three minutes before twelve o'clock

[11
1

Bell Telephone Quarterly

noon and was in the City of New York at half-past nine last
evening. ' '

Five years later Hone was presiding over the Whig
convention at Utica to nominate a candidate for gov-
ernor of New York. This is what he records in his
diary :

" 'Magnetic telegraph.' Strange and wonderful discovery
which has made the 'swift-winged lightning' man's messenger, an-
nihilated all space and tied the two ends of a continent in a knot !
The whole extent of the newly discovered phenomenon was never
made so apparent to me as on the day of the meeting of the con-
vention ; during the hour of adjournment to dinner a message was
sent by telegraph to Mr. Fillmore at Buffalo. The answer came
immediately that *Mr. Fillmore was not in his office, and could
not be found.' Soon after, another communication was received,
authorizing the withdrawal of his name. . . . This was handed
to me on my taking the chair, and had travelled 470 miles during
our short recess of an hour."

When Hone recorded the increasing speed of com-
munication by train he recorded a change in the degree
of speed, but when he recorded the use of the electric
telegraph he recorded a change in kind— the basis of a
new civilization— one based on instantaneous communi-
cation in politics, commerce, and the social contacts of
life. Electrical communication is one foundation of
the complete alteration in the habits of mankind, for
without rapid communications neither the spread of
modern knowledge nor the control and organization of
modern industry would be possible. Control of time is
one of the essentials that diiferentiate our civilization
from any that preceded and modern conmiunication
gives to the ordinary man almost unlimited facilities
for the control of tune and space and the interchange
of ideas.

Today, an individual located practically anywhere
in the United States has at his command day and night
—Sundays and holidays included— instrumentalities
for immediate intercommunication with almost any one
anywhere in the civilized world. On an average, in less

[2]

Communication

than a minute he can call up and talk by telephone with
any one in his community, which means in a community
the size of New York that he can almost instantly reach
any one of one and one-half million telephones and that
means several million people. In less than five min-
utes, in most cases, he can talk by telephone with prac-
tically any one of 19 million telephones wherever lo-
cated in the United States, and their location is such
that he can reach over those telephones nearly any one
in the whole country. In addition, he can, if he has oc-
casion to do so, talk to any of over 7 million foreign tel-
ephones which means that he can reach 80 percent of
the telephones in the world. Within the reach of his
voice are Canada, Cuba, Mexico, Great Britain, France,
Germany, Spain, Belgium, Holland, Switzerland, Den-
mark, Norway, Sweden and Danzig. He can, over the
same instrmnent and without moving out of his seat,
send a message— a telegram, cable or radiogram— to
anybody anw^^here in the United States or, for that
matter, practically any^vhere in the civilized world, in-
cluding ships at sea. He can send money by telegraph.
If he lives in New York or in one of several other
larger cities in the United States, he can, where ab-
solute accuracy is paramount or design important,
speed a facsimile message or a picture by wire to dis-
tant cities of the United States. If, for example, he is
distant from home and requires funds, his bank may
arrange to extend unlimited credit and even signatures
and identifying photographs by wire. He may rush a
power of attorney from Boston to Atlanta for use this
afternoon or send a bond circular in facsimile and have
it distributed in Los Angeles in a few minutes. If his
business is such that it has branch offices in several cit-
ies, they may be permanently linked by private tele-
phone or telegraph circuits of which he has exclusive
use, with the result that he may carry on his business
as though his branch houses were all located within a
city block. The messages that he sends from one

[3]

Bell Telephone Quarterly

branch to another can, if desired, be sent over a type-
writer so that a message typed in his office will be typed
simidtaneousl}^ in his branch office or offices. He may
hold conferences by telephone at which the groups of
people conferring are located in different parts of the
country.

His telephone conversations are almost instant, and
his written messages— telegrams, cables or radiograms,
will usually be delivered and even replies received
within a very short time— at the most it is a matter of
hours. Obviously, this has made it possible to dis-
tribute the parts of an industry geographically so that
they may be carried on most effectively without losing
centralized management.

So far I have been speaking of one individual's get-
ting in touch with another, but communication has also
a general as well as an individual aspect. An event of
importance happening any^vhere in the world is known
inmiediately throughout the United States and pub-
lished promptly in the newspapers. The vast network
of press wires that distributes this information through-
out the country is an essential part of our business, gov-
ernmental and social life. We are even so eager for
speed that in some cases we do not wait for newspapers
but we stand at a tape which records electrical impulses
sent over a wire and gives us market quotations.

Not so long ago men cried their wares in the streets
reaching customers perhaps a block away. Now men
cry their wares over the radio reaching customers across
a continent. Millions of people listen in their homes to
the news, to good music, to the speeches of political
leaders and, incidentally, are reminded of products of
national distribution. In a very short time this com-
bination has become an essential part of the social and
commercial life of the nation.

A few years ago a speaker's audience was limited by
the range of his voice. Thanks to the microphone and
loud speakers, a man can now talk to an audience of

[4]

Communication

100,000 or more people immediately before him, and his
words carried over wires to broadcasting stations and
spread through the air reach millions more. Where the
American people once judged the candidates for public
office largely by rmnor, reputation and reported state-
ment, they are now able to weigh the candidate's actual
words and the very tones of his voice.

Moreover, it is scientifically possible that these mil-
lions more scattered over the coimtry might see the
speaker in action, for the development of television
makes it possible not only to hear but to see at a dis-
tance. I said purposely that this was scientifically pos-
sible. It is not yet commercially practical and often it
takes a long period to change scientifically possible into
commercially useful. In this case the road ahead may
well be long and hard.

Radio has been used for more than twenty years for
intercommunication. The advent of radio broadcast-
ing, however, would seem to have resulted in confusion
in the public mind about the relation of radio and wires.
The public's attention, instead of being directed toward
the satisfactory and prompt transmission of communi-
cations, has been focused on the means by which such
transmission is achieved. Those of us in the business
of communication have always been engaged in trying
to find and employ the best and most economical means
and to extend its range. From its very nature, radio is
not and cannot be a substitute for intercommunication
by wire. Radio, however, has been and will continue to
be of great importance. It has widened the range of
communications. It is useful in communicating long
distances over large bodies of water, it is of inestimable
worth in the broadcasting of news, music and entertain-
ment, and it makes possible communication where wires
cannot be used, such as with ships and aeroplanes. It
would be unfortunate if the idea should become crys-
tallized that radio and wires, broadly speaking, are com-
petitive. They are ess"entially complementary, and

[5]

Bell Telephone Quarterly

must be so considered if we are to have the best and
cheapest intercommunication.

Progress in conununications has been due in large
part to organized research undertaken by the communi-
cations industry in this country. From such organized
effort have come such recent extensions of the useful-
ness of communication as rapid long distance tel-
ephony; the dial telephone for large cities— a develop-
ment which a few years ago even the most astute engi-
neers thought beyond the bounds of the attainable;
multiplex telephony and telegraphy based on frequency
separation— a development which has made one circuit
do the work of many; the sending of pictures by wire
and radio; high-speed loaded submarine telegraph ca-
bles; deep-sea telephone cables; practically all of the
present day technique of radio, not to mention collateral
developments such as the orthophonic victrola, the talk-
ing movie, devices for measuring deafness and ameli-
orating its effects, and television apparatus.

By refinements and new applications of the art we
shall extend the services of rapid communication to
more and more people and make its services more and
more useful to those who already have them. And this
X)rocess happily is not haphazard. It is not dependent
upon luck. Continued improvement is guaranteed by
systematic research and development.

Already on the basis of present scientific knowledge,
except for the prohibitive cost, every person in the
world— whether on land, sea or in the air— could be
brought into instantaneous intercommunication. All
the millions of the world's population are scientifically
within sight and sound of each other. But even if
universal, world-wide, instantaneous communication
were commercially practical there remain two obstacles.
One is the backward state of part of the world 's popula-
tion to whom rapid comnmnication is of little value
since they have little to communicate, and the other
is the fact that while half the world is blessed with

[6]

Communication

the light of day the other half is asleep. Modern civ-
ilization may in time stir the backward races to wants
and abilities that will make them need electrical com-
munication, but so far as I am aware, not even the re-
search staffs have the temerity to tackle the problem of
making the sun shine on both sides of the world at once.

This continued spread of rapid communications has
already had a marked effect upon mankind. The ulti-
mate economic, social and political results of the pro-
gressive elimination of time and distance in communi-
cation will be of profound importance.

In the field of industry, it vastly adds to the possi-
bilities of increased production with less labor, thus
tending toward a constantly better standard of li^ang
for all. In its social aspects it increases the extent of
an individual's interests and contacts with others and
adds to the richness and enjoyment of life. In its po-
litical aspects it tends toward a better and clearer un-
derstanding that makes for permanent peace.

Tlie comnmnications industry, although not the
only agency, is a most important one in developing a
world civilization tending to be independent of environ-
m.ent and tolerant of differences of race and culture.
Already the products and inventions of the whole world
and the thoughts and experiences of all civilized people
are almost immediately brought within the knowledge
of all. Never before has the world of men been chang-
ing so rapidly as now. In considerable part because
electrical communications have been developed in west-
ern civilization, that civilization is spreading through-
out the world for good or bad more rapidly than any
civilization in history has ever spread before. From
the fact that the civilized world is becoming one large
neighborhood should result the satisfaction that comes
from co-operation rather than the misery that comes
from conflict.

Conmiunication, however crude, has always been of
service to mankind. From the earliest days the bearer

[71

Bell Telephone Quarterly

of messages has had the spirit of the Message to Garcia.
The pony express rider would risk his life to get
through. That spirit is still in the profession of com-
munications. And it should be now more than ever, for
this civilization of ours depends upon fast and certain
communication as no other has before it. No people
could harness the powers of nature to serve them as we
have unless they, at the same time, organized men to
manage them. This modern organization of men, this
industrial society of ours, could not exist without elec-
trical conmiunication. The telegraph handles about
1,000,000 messages a day, and the telephones of the
United States 75,000,000 a day. The precision of mod-
ern business requires these rapid services. The en-
largement of men's capacities is dependent on the num-
ber of their fellows with whom they can have contact.
Without electrical communication their number would
not be large enough to make possible our present civili-
zation.

Electrical communication is more highly developed
in the United States than in any other country. The
communication industry takes pride in the service it
renders the nation. But that pride does not prevent
recognition of the conditions which have made its rapid
— its revolutionary— growth possible. Those condi-
tions consist of a public competent and eager to use
any facility that is offered, and a political system ca-
pable of evolving the purely American system of reg-
ulatory conunissions which protect the public's interest
but leave to the companies initiative and freedom of
action to manage to the best of their abilities the serv-
ices they render the public.

[8]

Standardization in the Bell System

Introductory Note

IN connection with a comprehensive study of in-
dustrial standardization, the National Industrial
Conference Board recently requested a description
of the processes of standardization in the Bell System
and the results obtained.

Such a description, of course, bears upon the activi-
ties of all parts of the Bell System and therefore a
statement was prepared through the co-operation of
representatives of the various general departments of
the American Telephone and Telegraph Company, the
Bell Telephone Laboratories, and the Western Electric
Company.

With the permission of the National Industrial
Conference Board the substance of the paper thus pre-
pared will be published in the Bell Telephone Quar-
terly. The first part is given below and the rest will
follow in a later issue.

In view of the large number of people who assisted
in the preparation of this statement it is hardly prac-
ticable to make specific acknowledgment to all con-
tributors, but the undersigned, who acted as editor,
washes to acknowledge particularly the co-o]Deration of
Mr. S. P. Grace, Bell Telephone Laboratories; Mr. T.
K. Stevenson and Mr. F. Clark, Western Electric Com-
pany; and Mr. F. L. Rhodes, Development and Re-
search Department, American Telephone and Tele-
graph Company.

H. S. Osborne.

General Statement

The ideal and aim of the BeU System, as regards
telephone service, is ''A telephone service for the na-
tion, so far as hmnanly possible free from imperfec-

[9]

Bell Telephone Quarterly

tions, errors or delays, and enabling at all times anyone
an}^vhere to pick up a telephone and talk to anyone else
anywhere else, clearly, quickly and at a reasonable
cost."

In order that it may most effectively work toward
this ideal, the Bell System has been organized to do
practically everything connected with giving such a
telephone service, from the purchase of raw materials
to the actual rendering of the service. Through the
various companies and departments which constitute
the System it does fundamental research work, inves-
tigates operating problems and develops operating
methods, designs new apparatus to take advantage of
the results of the research work and investigations,
manufactures the apparatus in quantity, installs it as
needed to meet service requirements, and operates and
gives service with the plant so provided, using the
methods so developed.

With this organization it is, of course, obvious that
with far-sighted management the Bell System should
seek to make the greatest possible use of standards for
its plant and practices, and should seek also to have
the nmnber of different standards as small as is con-
sistent with meeting adequately the service require-
ments of the System, in order to obtain the advantages
in both service and economy which result. Standard-
ization is therefore one of the firm bases on which the
Bell System is built and is to a large extent responsible
for the results which have been obtained.

Standardization in the Bell System is more than a
means of obtaining economy and efficiency. It is es-
sential to the best service and the most rapid progress.
Standards are developed as the result of the accumu-
lated experience of the operating companies and of the
work of several thousand people at headquarters whose
entire time is devoted to improvements. The results
of the analysis of the operating experience and of the
general investigations, researches, developments and

[101

standardisation in the Bell System

designs of the headquarters groups, crystallized in the
form of operating practices, methods, types of appa-
ratus and of conmiunication systems, are made avail-
able at once to the operating telephone companies of the
System throughout the country, with information re-
garding their desirable field of use. These types of
apparatus, conmiunication systems, methods and prac-
tices thereby become standards for the Bell System by
virtue of the fact that they represent the outcome of
adequate studies of the best way to meet a ty-pe of situa-
tion, and as such they are adopted by the operating com-
panies and put into use to the extent that they are
needed under the different conditions of different com-
panies. In some cases the new standards as developed
cover a new field of operating requirements or present
the means for doing something which could not be done
before. In many cases the new standards replace exist-
ing standards due to advances in the art, improvements
in technique or changes in operating requirements.
Standardization is therefore not a static thing but is
dynamic, involving a continuous procession of new
standards to meet new conditions or to meet old condi-
tions better than was heretofore possible, and the con-
sequent dropping of old standards.

In the Bell System the standardizing functions are
distributed through various companies and depart-
ments.

The headquarters' forces, consisting of the general
departments of the A. T. & T. Co. and the Bell Tele-
phone Laboratories, are as noted above devoted to
working out and standardizing improvements in tele-
phone plant, methods, and operating practices covering
the entire field of telephone work. This includes fun-
damental research work, the development, design and
specification of apparatus and of systems of communi-
cation, the development of standard methods of test,
construction and maintenance practices, methods of

[11]

Bell Telephone Quarterly

handling telephone traffic, business methods and pro-
visions for safety and health.

The Western Electric Company, which manufac-
tures, purchases, and distributes for the Bell System,
is, of course, very much concerned with standardization.
A great deal of its manufacturing work consists in the
quantity production of standardized products, and this
facilitates the use of standardized manufacturing proc-
esses. In the stocking and distribution of apparatus
and materials, standardized methods have been highly
developed. This is also true in the installation of cen-
tral office equipment, which is largely carried out by the
Western Electric Company.

The telephone plant throughout the country is oper-
ated by a group of 24 Associated Operating Companies.
Through the close co-operation between these com-
panies and the headquarters' forces, full advantage is
taken of their field experience in the determination and
standardization of the best methods and practices in
all matters bearing on the quality of the telephone serv-
ice, including the design, construction and operation
of plant, business methods and provisions for safety
and for the health of employees.

To a large extent the standardizing work of the Bell
System deals with matters peculiar to its own problems
and is carried on within the System. The various parts
of the Bell System are, however, taking very active part
in co-operation with numerous national organizations
engaged in standardizing work, in the development of
standards which have a broader application than within
the Bell System itself.

The various activities indicated in the foregoing
are briefly discussed in the following pages.

Standaedization in the Design of Telephone Plant

The nature of the telephone business is such that the
telephone system offers a very good example of the ad-
vantages of standardization of plant and equipment.

[12]

Standardisation in the Bell System

Telephone plant installed everywhere throughout the
country must be such as to give satisfactory service
when operated in connection with apparatus in any
other part of the country. The plant of the telephone
system is necessarily very complex in view of the com-
plicated technical functions which it must successfully
perform, the intricacy of the switching operations re-
quired for the rapid establishment of a connection be-
tween any two telephones in the country, and the com-
plexity of the electrical transformations necessary to
transmit and reproduce speech clearly between these
telephones.

The complexity of the telephone plant and the num-
ber of types of apparatus and material which would be
required would be very greatly multiplied if there were
not a high degree of standardization for all parts of
the telephone plant. In fact, it is not an exaggeration
to say that the telephone service of today could not be
given without this high degree of standardization.

As a result of standardization the telephone plant
includes very large numbers of identical imits of ap-
paratus. This, of course, has numerous advantages.
The use of very large nimibers of standard types of ap-
paratus, circuits and equipment results in large econ-
omies in production. For examj)le, about 1,500,000 re-
ceivers and 1,500,000 telephone transmitters, each of a
single type, are produced in a year. Also, about 2,500,-
000 relays of the "E" type, differing only in the details
of assembly of standard piece parts, are produced an-
nually, and of these about 239,000 are of one code num-
ber and 232,000 of another code number, the relays of
a given code number being identical. Without stand-
ardization these same quantities would be distributed
between a large nimiber of different types with cor-
respondingly greater costs. The advantages of using
in the telephone plant large numbers of identical pieces
of apparatus, of course, extend bej^ond production and

[13]

Bell Telephone Quarterly

include stocking, construction, maintenance and opera-
tion.

In all standardization of apparatus, interchange-
ability lias always been a prime consideration. This is
important from the standpoint of dimensions; for ex-
ample, transmitters are so designed as to fit into any
mounting even though made a good many years apart.
In a broader sense, considerations of interchangeability
Jead to the design of new standards in such a way as to
fit into existing plant with the minimum possible change
in the other items of the plant. This is of great im-
portance, for example, in the design of new circuits
which must function properly with existing telephone
plant both in the transmission of speech and in the
operation of signals associated with the switching
equipment.

In view of the large degree of standardization of
the present telej)hone i^lant, the standardization work
does not consist primarily in the sunplification of pres-
ent practices but to a large extent in the development
of new standard apparatus or materials to replace or
supplement existing standards.

These new standards mav have their oriajin in the
development of new operating requirements or condi-
tions, which are continuously reviewed by the studies
of the general departments of the A. T. & T. Company
in co-operation with the operating companies. An il-
lustration of this type of origin is given by dial switch-
ing equipment for very large cities, the development of
which was undertaken as the result of fundamental
studies showing that the conditions in large cities are
becoming progressively less favorable to manual and
more favorable to dial operation.

Or the new standards may develop from an inven-
tion or a group of inventions. An example of this is
a group of inventions bearing on the increase in range
of telephone transmission, which opened the w^ay to the
clear transmission of speech over very long cable cir-

[14]

standardization in the Bell Sjjsfem

cuits free from interruption by storm whereas previ-
ously the voice transmission was possible through cable
only over relatively short distances. This is resulting
in the rapid development of a nation-wide system of
toll cables to a large extent replacing for new work the
previous types of toll circuits.

Again the new standards may arise from the re-
sults of fundamental research work making possible
new kinds of apparatus or developing new types of ma-
terials as illustrated by the development of permalloy,
a new alloy having very extraordinary magnetic prop-
erties. This new material has been applied in the de-
sign of inductance coils and of relays which can thus
be made with a relatively small amount of magnetic ma-
terial giving lower cost or with improved operating
characteristics.

In any of these cases standardization is the final
step in the process of development which is carried out
by the headquarters departments, including the general
departments of the American Telephone and Telegraph
Company and the Bell Telephone Laboratories. The
development is based upon studies of the needs of the
operating companies and investigations of the possi-
bilities of new inventions, and it results in the complete
specification of the new type of apparatus or system
of conununication designed to best meet the end in view.

The proposed new standards are not only carefully
scrutinized as to design but are given extensive labora-
tory tests, and most often, in addition, trials under ac-
tual service conditions before being standardized.
With satisfactory results from these trials the appa-
ratus is standardized by the A. T. & T. Co. and general
information regarding it and its field of use issued to
all of the Associated Companies. The new standard is
thereupon adopted by each Associated Company for
use to the extent that conditions in its territory present
a proper field for its use.

Concurrent with the standardization of the new type

[15]

Bell Telephone Quarterly

of apparatus, the Bell Telephone Laboratories provide
to the Western Electric Company standard specifica-
tions covering the description and performance of the
apparatus, including manufacturing tests and inspec-
tions. It is the purpose of these specifications to give
adequate information to the manufacturer regarding
the device and regarding the performance requirements
which it must meet when completed, but not to specify-
in detail the process of manufacture. This is done by
the manufacturing organization itself, which standard-
izes for each type of apparatus the methods to be fol-
lowed in its production.

A great deal of attention has been given to the de-
sign of apparatus in such a way that a single piece part
can be used in a large number of different apparatus
units. By this means, engineering and production
costs are greatly reduced through the reduction in the
mmiber of parts and the resulting large quantity pro-
duction of as few standardized parts as possible.

One interesting example of this standardization of
piece parts is in connection with keys, that is, hand op-
erated switches. Keys are used in connection with tele-
phone switchboards in large quantities and are required,
to perform a very wide variety of switching functions.
This leads to the necessity for a large number of differ-
ent types of keys. However, these keys have been so
designed that certain parts are used interchangeably
in many different types of keys. Because of this fact,
production of such parts is very high and the keys
themselves can be manufactured on an economical basis
even though the demand for some particular combina-
tions of parts may be small. A similar illustration is
given in the design of relays, which are electrically
operated switches.

A great deal has been accomplished in the standard-
ization of the technical information about new appa-
ratus standards. Drawings, for example, covering
standardized equipment or apparatus are made up in

[16]

Standardization in the Bell Sj/stem

standard size and form. It has been found that 13
sizes are sufficient to meet the requirements of all but
the most unusual situations.

Not only are the drawings standard in size and form,
but it is found possible to use identically the same draw-
ing in different parts of the organization, thus avoid-
ing duplication of effort. Drawings covering the de-
sign of new apparatus made up by the Laboratories are
sent to the Western Electric Company or other man-
ufacturers involved and where applicable used by them
for manufacture. These same drawings are furnished
to the Associated Companies to inform them of the
newly standardized apparatus and used by these com-
panies in their technical work.

In connection with the standard drawings very large
savings are made by the use of standard symbols rep-
resenting pieces of telephone apparatus. These sym-
bols are arranged in a drafting dictionary, known as
the Circuit Convention Handbook, which is used by
draftsmen and engineers in preparing circuit drawings.
It contains conventional diagrams for all the standard
types of apparatus now in use. Each of the conven-
tions, of which there are thousands, is made up to in-
dicate the essential functions of the piece of equipment
as it affects the circuit, without showing the mechanics
of the design of the apparatus involved. It also covers
the abbreviations which are normally used on circuit
drawings.

As an example of the effect of standardization in
this particular. Figures 1 and 2 are of interest. Fig-
ure 1 is a drawing of a simple cord circuit made in 1889.
Figure 2 shows how the drawing of the same circuit
would be made today. The great reduction in labor
of drafting and much greater ease of interpretation of
the drawing are evident.

Of the above conventions those which are in general
use by all telephone manufacturers are in process of

[17]

Bell Telephone Quarterly

approval by the American Engineering Standards
Committee as American standards, thus assuring uni-
formity of these conventions, not only within the Bell
System but among telephone manufacturers outside
the System as well.

~T

Generator

JL

50 ohms

Testing Plug

Fig. 1

The general plan outlined above for drawings is
also used for the distribution of specifications for equip-
ment design. Specifications prepared by the headquar-
ters' forces are distributed to both the manufacturing
and the operating branches of the organization. These

[18]

Standardization in the Bell System

specifications are made uniform in style and size to fa-
cilitate their use and their filing.

Fig. 2

Specific Examples of Standardization of Telephone

Plant

It is, of course, impracticable within a limited space,
to indicate all of the important items of standardiza-
tion in the telephone plant. HoAvever, in addition to
the illustrations used in connection with the foregoing
general discussion, a few of the most outstanding re-
sults are briefly outlined below.

In local manual switchboard equipments, it is found
possible to meet the widely varied demands of the Bell
System with only five standard types of switchboard,
three designed for common battery offices and two for
magneto offices. This means that while the actual
amounts of equipment required naturally vary with the
size and local conditions of the office, the switchboard

[19]

Bell Telephone Quarterly

in each case can be made up of assemblies of standard
units corresponding to one of these five standard types.

In dial equipment the standardization is still
greater. Here again there must, of course, be differ-
ences in the amount of eqviipment in different offices
and also differences in certain items of the equipment.
Beyond this, however, there are in use in the Bell Sys-
tem essentially only two different types of dial machine
equipment. One, the panel type, is designed to meet
the requirements for the larger cities, each of which
has a relatively large number of offices which must be
interconnected by means of the dial equipment. The
other type of equipment, the step-by-step, is designed
for use in the smaller cities and toAvns where a single
office or a relatively small nmnber of offices is adequate
to provide present and prospective telephone service.

Apart from the telephone hand set which is just
beginning to come into use, there are made for general
use for subscribers only one type of receiver and one
type of transmitter, although a small number of addi-
tional types are made for a fraction of a percent of
special cases. These instruments, combined with as-
sociated ringing and auxiliary equipment, form tele-
phone sets, some of which are desk stands and some
of which are wall sets. It is found, however, that the
needs of the country can be supplied with only 23 types
of sets, including both those for use with dial and those
for use with manual switching equipments, and includ-
ing the arrangements necessitated by different types
of service, as individual line, two party, four party, coin
box, etc.

In the installation of telephone sets on subscribers'
premises, numerous requests are received for wiring
plans by which telephones may be switched from one
line to another, special ringing arrangements may be
provided, and extension stations may be associated with
the line. The extent to which simplification in practice
may be advantageous is illustrated by the results from

[20]

Standardization in the Bell System

a single operating company of a review some time ago
of their wiring plans. In this one company it was
found that whereas 540 different plans were in use, the
requirements could be met by 28 standard plans, and of
these 28, 16 took care of all but a few exceptional cases.

In the preservative treatment of poles, while a very
large number of types of treatment have been experi-
mented with, two types have been standardized for gen-
eral use. One is an overall treatment for pine poles,
Avhich require treatment for the parts exposed to the
air as well for the parts in the ground. The other is
a single type of butt treatment for other woods such
that preservative treatment of only the part of the pole
which is in the ground is adequate.

With the exception of a few special cases, the re-
quirements of the Bell System are met by two types of
standard crossarms, one designed for poles carr^T-Ug
only telephone circuits and the other designed for poles
carrying both telephone circuits and conductors of other
wire using companies.

A large percentage of the conductors in the tele-
phone system are in cables placed in underground con-
duit. It is found that approximately 90 percent of the
conduit is properly covered by six different types of vit-
rified clay, differing only in the niunbers of ducts which
constitute the unit.

There has been a high degree of standardization of
the sizes of copper wire used for telephone conductors.
97 percent of the open wire (that is, wire strung on in-
sulators) added to the plant at the present time is made
up of three sizes, respectively, 104, 128 and 165 mils
in diameter. Insulated wires in cables are also selected
from a limited number of gauges. For example, long
toll cables are made up practically entirely of two
gauges, 16 and 19 B. & S. gauge. The cables for local
distribution circuits are more than half of a single
gauge, 24 B. & S., and about 95 percent are of one of
three gauges, 24, 22 and 19 B. & S.

[21]

Bell Telephone Quarterly

It lias been possible to do a great deal in developing
standards covering the best methods for the design and
layout of tele]Dhone plant. A good example of this is
given in the layout and arrangement of telephone ap-
paratus in central offices. It is necessary each year to
build about a hundred telephone buildngs to house ad-
ditional equipment. While the external appearance of
the building is adapted in each case to the neighborhood
in which it is placed, the dunensions and general ar-
rangement can in most cases best be determined by
using one of a limited number of standard arrange-
ments. This makes possible the use of standard as-
sembled equipment units, of standard detailed floor
plans and equipment engineering specifications and
leads to economy and speed of construction. It also
insures that carefully worked out arrangements, de-
signed to give best operating results and provide great-
est flexibility for future growth, are used for all cases
in which they are suitable.

Another example of this type of standardization is
presented by toll circuits. If each toll circuit were de-
signed individually to meet exactly the requirements
as regards efficiency for good transmission in the par-
ticular case, the result would be that in general each
small group of toll circuits between t^^'O points would
differ in design from every other group of toll circuits
between any other two points. This would result in
tens of thousands of different kinds of toll facilities,
each designed for a specific use only and would result
in endless confusion and lack of practicability. In-
stead of following this plan, the types of toll circuit
for new construction are limited to a very small num-
ber including onh^ three types for open wire circuits
and from four to six types for toll cable circuits. In
the design of any given circuit choice is made from this
limited nmnber of types of facilities, selecting one
which combined with suitable ap^Daratus will give not
less than the required transmission efficiency in the

[22]

Standardization in the Bell System

given case. This results in great advantages in sim-
plicity of plant design and in the flexibility with which
facilities can be transferred from one use to another
as occasion requires.

Other specific examples could be given but the above
are sufficient to indicate the very important part which
standardization plays in the design of telephone plant.

Standardization of Raw Materials

The production of standard products naturally re-
quires the standardization of the raw materials enter-
ing into those products. There have, therefore, been
developed a series of specifications covering the stand-
ard requirements for raw materials purchased for the
construction of telephone apparatus and also covering
standard finishes for these materials as fabricated by
the supplier.

An important example of the establishment of
standards for raw material is the establishment of re-
quirements for sheet brass of all tempers and thick-
nesses. This work has been extended to include nickel
silvers and bronze, covering altogether seven grades
of metal. Work has recently been started on rod stock.
All of this work is carried on co-operatively between
Bell Laboratories, the Western Electric Company and
the principal suppliers of raw material.

Standard requirements for materials, of course, de-
pend upon the establishment of suitable standard
methods of test to measure the quantities which are to
be specified. The American Society for Testing Ma-
terials has done a very large amount of work in devel-
oping standard tests for materials and it has been the
practice to adopt these standards of test whenever they
serve the purpose. As the result, a large majority of
the specifications for raw material contain reference
to A. S. T. M. testing methods.

In addition, however, it has been necessary to take
a very considerable amount of initiative in the develop-

[23 1

Bell Telephone Quarterly

ment of standard testing methods. Wherever prac-
ticable this work has been done in co-operation with
the A. S. T. M. and other interested organizations.

The question of hardness testing was given consid-
erable study in connection with the work on brass and
this has resulted in the adoption of standard tests for
the Bell System which are now being studied by the
A. S. T. M. Impact tests suitable for molded and sheet
insulating materials have also been developed. An-
other interesting development is that of suitable tests
for die castings, including tensile strength, elongation,
hardness and impact strength. In developing standard
methods of test for die castings, more than 55,000 speci-
mens have been prepared to date and are being tested
by the co-operating organizations.

Other standard methods of test developed through
the Bell System which are of interest, are insulation re-
sistance tests, high frequency tests and tests of insulat-
ing papers. In these tests and in others, the Bell Sys-
tem representatives have co-operated with the A. S. T.
M. and they have adopted as standard the methods de-
veloped.

The discussion of raw materials is a natural place
in which to mention the standardization of methods of
sampling although this applies to completed products as
well as to raw materials. In many cases it is prac-
ticable to make the tests for the check of quality on only
a fraction of the material supplied. In order to insure
uniform and satisfactory results, it is necessary to have
standard methods of sampling including the determina-
tion of the size of the sample lots to be tested and the
interpretation of the results of those tests as applying
to the material as a whole.

[24]

1800-Pair Cable Becomes a Bell System

Standard

CABLES containing 1818 pairs of No. 26 gauge
wires in a sheath of standard size have recently
been made available for the use of the Associated
Companies of the Bell System.

This advance in the telephonic art is but one of the
many benefits that the Associated Companies receive
as a result of the development and research services
performed for them, in accordance with the terms of
the License Contract, by the American Telephone and
Telegraph Company's staff of engineers and scientists,
including those of the Bell Telephone Laboratories and
the Western Electric Company.

In announcing the standardization of this new type
of cable, it seems not amiss to indicate its relation to
the prior art of cable design and manufacture as well
as its setting in the whole picture of cable development
that has been steadily unfolding for nearly half a cen-
tury.

The progress that has been made in placing more
and more pairs of wires in a cable has been described
in previous articles in the ''Quarterly'" and is sum-
marized in the table below.

Number of Pairs in Largest Cable

Year

No. 19
Gauge

No. 22

Gauge

No. 24

Gauge

No. 26
Gauge

1892

1895

1896

1901

1902

1912

1914

1918

1928

100
152
208
303

455

404
606
909

1212

1818

1 The Development of Cables used in the Bell System, April 1923, Vol.
II, No. 2. Cable Development and Eesearch, January 1924, Vol. Ill, No. 1.

[25]

BeJl Telephone Quart erly

Note: The sizes and weights of the different gauges of wire are as follows:

Diameter in Weight in

Gauge Thousandths Pounds Per

A. W. G. of an Inch Mile

19 36 20

22 25 10

24 20 63^

26 16 4

The preceding table brings out the fact that, during
the period from 1914 to 1928, the greatest number of
pairs that could be put into a single cable was 1200,
the wires being No. 24 gauge.

In this connection the question naturally arises, why
is it desirable to have as many as 1800 pairs of wires
in one cable? The answer is twofold.

Chiefly in the large cities, there are places where
all the ducts in the existing underground conduit sys-
tems of the telephone company are becoming occupied
with cables. To provide more wires for the constantly
growing telephone plant, two courses are open; either
to install more underground ducts to accommodate ad-
ditional cables or to replace some of the cables which
now occupy ducts in the existing conduit system with
cables containing more wires. In many of these situa-
tions, on account of the extent to which the space be-
neath the streets is occupied by rapid transit tunnels,
sewers, water and gas pipes, electric light and power
cables, and other subterranean works, it would be pos-
sible to provide additional telephone ducts only with
great difficulty and at large cost.

Hence the relief afforded through the ability to sub-
stitute 1800-pair cable for 1200-pair cable, or smaller,
either in new w^ork or in the existing plant, is a matter
of importance.

Furthermore, since every underground cable occu-
pies a duct and must have a metallic sheath, the ex-
pense of a pair of underground wires becomes less in
proportion as the cost of duct and sheath is divided
among a larger number of pairs of wires in the cable.
So where the use of 1800-pair cable, rather than 1200-

[26]

1800-Pair Cable Becomes Standard

pair, is practicable, from a transmission standpoint,
this will assist in keeping the cost of the telephone plant
from mounting as rapidly as would otherwise be the
case.

1800-pair cable will also affect plant engineering
practices, by changing the economic relation between
the costs of material and of labor. For example, where
growth is rapid, there will be cases in w^hich greater
economy and better service will result from providing
relief by means of new 1800-pair cable than by making
a greater use of existing facilities through rearrange-
ments and changes.

Lest it might be assumed that the development of
1800-pair cable consisted merely in substituting 26-
gauge wire for the 24-gauge wire used in 1200-pair
cable, it seems worth while to point out that the devel-
opment required the invention of a wholly new method
of forming the cable core. The type of assemblage
previously used, consisted of layers of twisted pairs,
laid up in the form of a helix, adjacent layers being
stranded in opposite directions. This type of assem-
blage did not prove suitable for making 1818-pair cable
and it became necessary to devise a core which virtually
consists of an assemblage of 18 component cables or
''units," each containing 101 pairs. These constituent
cables are grouped together as shown in Figure, and
this peculiar type of core construction has been given
the name "multiple unit." The multiple unit core
structure will imdoubtedl}^ find application in other
types of cable. Each wire in this 1800-pair cable is
insulated by means of a wrapping of paper tape. As
in the 1200-pair cable, the paper tape is about one-quar-
ter of an inch wide, but in the 1800-pair cable, the thick-
ness has been reduced considerably.

Long before the telephone business reached its
teens, in fact, when it was but about five years old, such
cables as there were in those days— and they rarely ex-
ceeded a few hundred feet in length— made use of small

[27]

Bell Telephone Quarterly

wires, sometimes as fine as No. 26-gauge. About 100
of these wires was the greatest number that was ever
placed in one cable at that time. The individual wires,
each insulated with a serving of cotton, were twisted
into a core and boiled in paraffin. After that, the core
was drawn into a lead pipe slightly larger than itself
and melted paraffin charged with carbonic acid gas
was forced into the pipe and allowed to cool, forming
a cake of paraffin between the core and the sheath.

With the local battery system of transmission then
employed, the efficiency of the cable circuits was con-
trolled by two factors of substantially equal impor-
tance,— resistance and capacitance, or, as it was then
termed, "electro-static capacity." For a long time no
means were available for materially decreasing the
electro-static capacity. Therefore, as the need arose
for cables of greater and greater length, the require-
ments for better transmission efficiency thereby brought
about could be met only by using wires of larger size
in order to obtain lower resistance. Gradually the size
of wire used in cables was increased until No. 18 came
to be common practice. Further important gains in
the transmission efficiency of cable circuits became pos-
sible as soon as the use of dry paper as the insulating
material was discovered to be a practical means for re-
ducing electro-static capacity.

After loading became available for interoffice trunk
cables, and as more efficient transmitters, receivers and
other apparatus were developed and used, the need for
such highly efficient circuits as had previously been re-
quired for subscribers' cables became less. Consistent
with obtaining satisfactory grades of transmission, it
was found to be most economical to place smaller wires,
and more of them, in the cables used for subscribers'
lines, compensating for their lower efficiency by the
use of larger wires in the longer trunk lines and of
loading to increase further the transmission efficiency
of the latter. The result of designing the entire cable

[281

1800-Pair Cable Becomes Standard

plant so that all its parts will be in economic cost bal-
ance has been to increase the use of No. 22 gauge wires
and, later, No. 24 gauge wires for the shorter subscri-
bers' lines and interoffice trunks. This has been fur-
ther facilitated since it has become practicable to ap-
ply loading to No. 22 gauge circuits in trunk lines.
Thus have changing conditions led us in a cycle from
small wires in cables, to larger ones and back again.

The extent to which cables with small wires have
been coming into use is shown by the fact that while
of all the exchange cable shipped to the Associated
Companies by the Western Electric Company during
the five-year period, 1915 to 1920, about 80 percent of
the conductor mileage was of No. 22 gauge; about 12
percent No. 19 gauge ; and about 8 percent No. 24 gauge
(the latter consisting chiefly of 1200-pair cable) ; dur-
ing the five-year period, 1923 to 1927, the percentages
of conductor mileage of the different gauges shipped
were: No. 22 gauge, 33 percent; No. 19 gauge, 11 per-
cent; and No. 24 gauge, 56 percent.

Generally speaking, transmission considerations
will limit the field of usefulness of cables with No. 26
gauge wires to subscribers' lines of moderate length
and to trunk circuits used exclusively for handling
traffic between offices situated near each other. As the
greatest congestion of underground wires is usually
found where the above conditions prevail, the 1800-pair
cable will be a useful instrumentality in the service of
the Associated Companies of the Bell System. Its ex-
tensive use is now being taken into account in the funda-
mental plans for the future.

F. L. Rhodes.

[29

Counterless Business Offices

THE rather recent development of the counter-
less type of business office presents an inter-
esting feature of the efforts of the Bell System
toward dealing with customers on a more individual,
personal and friendly basis. In view of the fact that
the business offices are the first point of contact with
new subscribers, and that they handle, in the aggregate,
a very large number of personal transactions \vith cus-
tomers, it is clear that they are important factors in
accomplishing this purpose ; and, in addition, they are
sometimes the only part of the company's premises
which customers visit in person.

The usual arrangement of a business office has been
to provide a portion of the space for all employees'
desks and other office equipment, and to have a counter
separating this from the space for customers' use.
Transactions with customers are conducted- across the
counter, which is attended by those employees assigned
to the duty of meeting customers and taking care of
their requests. Tellers' cages, where payments of bills
are received, are commonly located at one end of the
counter, or adjacent to it.

Under the counterless plan the counter is done away
with and each business office representative is provided
with a desk, at the side of which are placed one or more
comfortable chairs in which customers may be seated
during interviews. Figure 1 gives a view of one coun-
terless office, illustrating this arrangement.

In practically all of the larger counterless offices,
and in many of the smaller ones, the space used by the
employees engaged in handling telephone contacts and
in clerical and other work is partitioned off from the
remainder of the business office. This separation not
only removes from the public office the unavoidable

[30 1

Coimterless Business Offices

noise and bustle incidental to the work of the large
nimiber of employees who do not handle personal con-
tacts with customers, but it also avoids the situation
occasionally arising, when all the counter attendants
are engaged, where customers waiting for attention fail
to understand why other employees who are in view do
not wait upon them. It also makes practicable the in-
stallation m the public office of somewhat more at-
tractive furniture and fixtures, and the decoration of
this space in a more pleasing manner.

With this arrangement it is the general custom to
have someone near the entrance to greet incoming cus-
tomers and see that they are properly directed and that
their affairs are given prompt attention. In many of-
fices there is a floor director definitely assigned to this
duty, while in other offices any one of the representa-
tives not occupied with a customer may assume this
function. The floor director may be able to handle per-
sonally some of the contacts, such as those involving
only questions which can be answered quickly and
simply and without recourse to records, thus saving the
customer's time and expediting the work. If all the
business office representatives are engaged and a cus-
tomer cannot be served immediately, he is directed
to space where comfortable chairs or other seating ar-
rangements and a table with reading material are
provided, and the floor director sees that he is made
comfortable until a representative is free. Figure 2
presents a photograph illustrative of such an arrange-
ment of waiting space in a counterless office.

The payment section has also been given considera-
tion, and in many offices an open type of counter has
been installed in place of the usual barred or grilled
''cages." An example of this type of coimter is shoA\Ti
in Figure 3. The payment section is usually located
near the entrance for the convenience of the many cus-
tomers who visit the office merely to pay their bills.

[311

Bell Telephone Quarterly

The open type counter seems to aid in making these con-
tacts more friendly and personal.

In comparison with the comiter arrangement, the
counterless plan permits customers to transact their
business on a more personal basis, and in an atmosphere
of comparative privacy. Customers also appreciate
the courtesies indicative of considerate attention which
can be more gracefully extended in the counterless of-
fice, such as the fact that the representative rises to meet
a customer approaching his desk, and at the conclusion
of a contact also rises with the customer.

The first counterless offices w^ere established about
two years ago and experience with them has been so
satisfactory that over sixty such offices are now in op-
eration throughout the Bell System, and plans have
been made for the conversion to, or establishment of,
over forty additional offices under this plan during
1929. While many of the present counterless offices are
small or of medium size, with from two to ten business
office representatives, the plan has been introduced in
some of the larger offices and experience seems to have
demonstrated that it is adaptable with equally satis-
factory results to these places. At the present time
this plan has been decided upon for one of the largest
business offices in the System, which will require from
twenty-five to thirty representatives.

It is anticipated that as additional business offices
are established and as rearrangements of existing of-
fices become necessary or desirable, the counterless ar-
rangement will represent an increasingly important
aid in establishing and maintaining satisfactory rela-
tions with customers.

R. S. Rankin.

Editor's Note: Mr. Eankin is of the Staff of the Commercial Engineer
of the American Telephone and Telegraph Company.

132]

An Economic Review and Outlook

THE year 1928 was a notable one in the economic
annals of the United States. This was not
merely because the year witnessed various new
high records of industrial output, for after all that is a
normal occurrence in this country. Nor was it because
of such changes as occurred in business technique or in
the general economic as]3ect of things. The year was
notable principally for its exceptional financial devel-
opments, which will be discussed forthwith.

Money and Stock Markets

In an article similar to this in the January, 1928,
issue of this Quarterly, the statement was made that
"it would be easy to compile quite a list of contrasts be-
tween the years 1926 and 1927." Not only could the
same thing be said of 1927 and 1928 but, far more strik-
ingly than in 1927, the financial conditions and devel-
opments of 1928 grew out of, and the contrasts arose
from, the conditions in the preceding year. Most
clearly was this so in the case of the money and security
markets, gold movements, and international financial
developments.

During practically the whole of the second half of
1927, this country and the rest of the world had been
treated to an exceptionally interesting exhibition of the
potency of an active federal reserve policy in affecting
domestic money rates. Federal reserve authorities
had determined to facilitate a substantial outward
movement of gold and at the same time prevent the
movement from tightening the money market until such
time as they saw fit to permit it to tighten. So success-
fully were the reins slackened that the stock market
got the bit between its teeth and not only refused to
be checked until the final month of 1928, but galloped

[33]

Bell Telephone Quarterly

ahead with ahiiost steadily increasing speed as the year
wore on. The losses of gold were felt in the money
market as soon as they ceased to be neutralized by open
market operations by the reserve banks. Sales of re-
serve bank assets tightened money still further and
were followed by three successive increases in the dis-
count rates of most of the reserve banks. Meanwhile,
through the printed word, federal reserve authorities
were making clear their disapproval of the change in
the credit situation and in the character of bank port-
folios which the great increase in loans on securities,
financing the rampant bull market, had brought about.

During practically all of 1928 the federal reserve
authorities were engaged in prosecuting a tight money
policy, taking cognizance at once of the stock market,
of gold movements, and of that section of the Federal
Reserve Act which directs the reserve banks to fix their
rates of discount ''with a view of accommodating com-
merce and business ' ' ; eight of the reserve banks having
raised their discount rate to 5 percent, the highest figure
since 1921, in a year in which domestic business, after
recovering from the recession of 1927, showed not the
slightest sign of commodity price inflation or of un-
healthy boom conditions. One short-term money rate
after another climbed during the course of the year to
the highest figure it had reached since 1921, and still the
stock market rose higlier and higher. Meanwhile busi-
ness during the second half of the year, when the high-
est money rates were prevailing, moved along at very
satisfactory levels, contrasting notably with the reces-
sion that occurred in the second half of 1927, in the
face of declining money. The high rates of 1928 in
time naturally reacted on foreign exchanges and not
only helped to check the outward movement of gold,
but were instrumental in bringing about gold imports.

During most of 1928, with a satisfactory level of
general business achieved, the economic indices which
received the greatest amomit of attention were not

[34]

An Economic Review and Outlook

statistics of steel ingot production, or of foreign trade,
or of railroad freight car loadings, or all of these to-
gether, but rather any good index of industrial stock
prices, and the weekly figure of brokers' loans— loans
made by or through reporting member banks of New
York City to brokers and dealers in securities— re-
ported weekly by the Federal Reserve Board. Fur-
thermore, it was not merely a natural psychological
phenomenon that the interest in each of these grew as
they mounted together ; for in their rise were being wit-
nessed the entrance and growth of new elements to be
reckoned with in future economic analyses. In the
first place, the American people during 1928 capitalized
the future growth in earning power of American in-
dustrial corporations at a higher rate, particLilarly in
relation to current money rates, than they had at least
for several decades, if not for any time in the past.
In the second place, many American corporations them-
selves assisted in this process by furnishing to the stock
market an increasing proportion of the funds which the
jDublic might borrow, to buy securities for investment
or speculation. It was these corporate funds, added
to moneys furnished by foreign banks and investment
trusts which, coming to the stock market in response
to high money rates, gave it plenty of ^'working cap-
ital," almost regardless of the wishes of the federal
reserve authorities.

After the crash of 1920-21, American industrial cor-
porations had learned two lessons, among others, that
are pertinent here. In the first place, they learned to
rely as much as possible on hand-to-mouth buying of
commodities, so as not to pile up un^\deldy inventories
or tie up cash unnecessarily. On the other hand, they
decided not to rely on a hand-to-mouth policy of secur-
ing credit, but to finance themselves to a far greater
extent than before the war with bond issues, or other
capital obligations, relying less than previously on bank
credit. The net result of these two practices and of

[35 1

Bell Telephone Quarterly

steadily increasing efficiency in the nse of working cap-
ital, and also of a succession of prosperous years, was
to put many of our large industrial organizations in
possession of substantial volumes of "cash" in the form
of bank deposits. The high money rates of 1928 pulled
a large amount of these deposits out of the banks to be
put at the disposal of the stock market, which to that
extent was freed from the necessity of going direct to
the banks to try to borrow money which the latter, bor-
rowing rather heavily at the federal reserve banks,
might be indisposed to lend. Brokers ' loans rose from
$3,718,000,000 on December 28, 1927, to $5,395,000,000
on December 5, 1928, much the greatest increase they
had ever shown in the course of a year ; and $1,279,000,-
000 of the increase was in the form of loans "for ac-
count of others," that is to say, loans placed through
the New York banks almost entirely by corporations,
foreign lenders, and investment trusts.

Money Rates and the Bond Market

Space does not permit the tracing through of the
direct and collateral effects on the banking and credit
structure of the large increases in loans on securities,
both by banks and by others, which accompanied the
great bull market of 1928. It must suffice to say that
on top of the tightening of conmiercial money rates,
brought about by the loss to our monetary stock JDetween
the end of April, 1927, and the end of June, 1928, of
$500,000,000 of gold and by sales of federal reserve
earning assets, on balance, during that period, came a
much greater stiffening of Stock Exchange money rates.
The spread between rates on commercial money and
Stock Exchange time money became the widest since
the panic of 1907, and call money on various occasions
rose to 10 percent, and early in December to 12 percent.
Commercial paper rates, rising for the best names to
5 J percent, and 90-day bankers' acceptances at 4 J per-
cent or slightly above, in the second half of the year,

[36]

An Economic Beviciu and OutJoolx

were at tlieir highest levels in nearly seven years. Dur-
ing most of the time the stock market apparently paid
little attention to the cost of money, especially since
the high rates were coaxing increasing volumes of
funds to the market, and supply rather than price was
the more important consideration.

The bond market, however, was naturally more sen-
sitive than the stock market both to rising interest rates
and to the check imposed by the changed credit situa-
tion on increasing security investments by banks, espe-
cially during the second half of the year. A sharp de-
cline in bond prices set in during the suimiier which
ceased only when the volume of new bond financing,
which had risen to very large totals, had been suffici-
ently curtailed. The curtailment took place in three
directions. In the first place, certain projected do-
mestic financing operations were unquestionably post-
poned or abandoned. Secondly, a substantial increase
took place in the proportion of corporate financing in
the form of stock issues. Thirdly, there was a sharp
and sudden decline in the volume of security issues for
the account of foreign borrowers. (In August, no
loans at all were floated in the market for the accoimt
of foreign governmental units.) Of these three, the
first was probably of least importance. The second
change noted did not of course mean a curtailment in
the demand for capital ; but to the extent that the rising
stock market and other factors had caused increasing
preference by investors for stocks over bonds, the
change in type of financing accommodated itself to the
change in clientele.

Some International Developments

The curtailment in foreign financing in the second
half of 1928 was one of the outstanding phenomena of
the year, especially taken in connection with other
items going into our international balance of pajanents,
and in connection with some of its European effects.

[37]

Bell Telephone Quarterly

In the first eleven months of 1927 our net export bal-
ance of commodities was $605,000,000, and foreigners
also took, net, $78,000,000 of gold. The borrowed, net,
$1,307,000,000 in the form of security issues floated
here. The net credit on these items in favor of for-
eigners was thus $624,000,000. During the first eleven
months of 1928, we not only had a larger conmiodity
export balance, aggregating $906,000,000, but in addi-
tion lost to foreigners about $280,000,000 of gold, mak-
ing a total of net commodity and gold exports of
$1,186,000,000. This was covered to the extent of only
$1,140,000,000 by net foreign borrowings through se-
curity offerings here, making a debit balance against
foreigners of $46,000,000, as against the credit item of
$624,000,000 a year previous. Furthermore, foreigners
doubtless owed and paid us more on interest account
this year than last and put substantial amounts of f mid.s
at the disposal of our stock market. It is clear that
the funds lodged with our banks at the disposal of for-
eigners must have considerably diminished during the
year and that short-term credit to foreigners in part
took the place of long-term borrowings.

Here are the totals, in millions of dollars, of the net
amount of foreign borrowing (governmental or cor-
porate) in this country in the first six months and the
next five months of 1927 and 1928 :

19S7 1928

First six months 715 839

Next five months 592 301

First eleven months 1307 1140

The falling off in the second half-year of 1928, in com-
parison both with the first half of 1928 and with the
latter part of 1927, is striking.

It so happened that the decline in our foreign loans,
and particularly in our loans to Germany, in the late
summer, practically coincided with the beginning of a
new Dawes-Plan year in which the maximum German
reparation payments under the Plan would come due.

[38]

An Economic Revietv and Outlook

Since, in the preceding four years, the transfer of rep-
aration payments under the Plan had been made pos-
sible to no small extent by American loans to Germany,
this coincidence might have had important results if
England and, to a greater extent, France had not forth-
with fully substituted for the United States as a pro-
vider of funds to Germany. Here was another in-
teresting contrast with 1927. It had been just a j^ear
previous that the federal reserve was facilitating gold
exports to England and to France by means of an easy
money policy in this country. This fall, with high
money rates obtaining here, the two European nations,
fortified by adequate banking reserves, were taking our
place in transferring working capital to Germany, at
such a rate that the latter country could not only meet
reparation payments and pay for continued large net
import balances of commodities, but also acquire in
London substantial quantities of gold to be added to the
3'eserves of the Reichsbank. Funds were attracted to
Germany, of course, by high money rates, reflecting
continued shortage of working capital in a country
which is making every eif ort not only to repair wartime
and post-war damages to her industrial organization,
but to expand substantially her industrial plant and
her exporting ability. Incidentally, by no means the
least important event of the year was the initiation,
on the part of the nations concerned with German rep-
aration payments, of steps to determine along what
lines the Dawes Plan should be revised.

Two important events which had been prepared for
by the substantial outflow of gold from this coimtry in
1927 and 1928 deserve mention at this point. One was
the stabilization of the French franc. In June, 1928,
the French Parliament passed a law which fixed the
gold content of the franc at a figure which made its
value about 3.92 cents, just about one-fifth of the value
of the pre-war gold franc. As in the case of the other
principal Eurojpean countries which have stabilized

[39]

Bell Telephone Quarterly

their currency, it is not intended that for the time being
at least gold shall circulate as currency in France. The
other event was the passage by the British Parliament
in July of an act amalgamating the government cur-
rency note issue ^\dth the Bank of England note issue.
The actual taking over by the Bank of liability for the
currency notes, as the first step toward amalgamation,
took place in November.

Corporate France; Investment Trusts

To return for a moment to the subject of domestic
finance. In spite of some large monthly totals regis-
tered during the first part of the year, the aggregate
of domestic corporate financing in 1928 was about 8 or
10 percent below the aggregate for 1927. Thanks in
part to a further itensification of the merger and con-
solidation movement in American industry during
1928, the volume of offerings for cash by industrial
corporations was little different from that of 1927. Se-
curity issues by public utilities and railroads, however,
were both in distinctly lower amounts in 1928 than in
1927. The high money rates of the second half of 1928
naturally put a check on refunding financing, which
had been such a striking feature of the preceding two
years, and also affected possible merger financing and
issues to pay for new construction. As has already
been indicated, the concomitance of high money rates
and a rapidly rising stock market was responsible for
a definite decline in the second half of the year in the
proportion of financing represented by bond issues and
a roughly corresponding increase in the proportion
represented by stock issues. In this coimection it is
interesting to note that, toward the end of the year espe-
cially, a number of offerings of "American shares" in
foreign enterprises were floated. Finally, mention
must be made of an extraordinary growth during the
year of investment trusts and of the offering of their
securities, which became an increasing factor in the se-

[40]

An Economic Revietv and Outlook

curity markets. The profitableness of the operations
of the investment trusts organized during the past few
years in a period of rapidly rising security prices, made
it ]30ssible for investment trust securities to the amounts
of hundreds of millions of dollars to be successfully
floated in 1928. The organizations were of the most
varied types as to financial structure, fields of possible
investments, and powei^s of their managements. Their
influence was felt in the stock market not only through
purchases and sales of securities but through the con-
tributions which their idle funds made to brokers'
loans for the "account of others."

Industry; Trade; Prices; Labor

This review has devoted an unusually large amount
of space to the financial developments of the year, both
because of their exceptional inherent interest and the
striking contrasts which they afford with the develoi3-
ments of 1927, and because they have perhaps an un-
usual bearing on the prospects for 1929. Let us turn
now to a consideration of some of the outstanding
events of 1928 in industry and trade.

As was noted in the article a year ago, 1927 was a
year of declining profit margins for many industries
and was characterized by a distinct business recession
in the latter part of the year which brought about con-
siderable unemployment. On all three of these counts,
1928 furnished marked contrasts wdth its predecessor.
Early in the year business began to recover, and later
employment and profits to increase, so that on the whole
1928 was for business in general a much more satis-
factory and profitable year than 1927. Because busi-
ness held up especially well in the second half of the
year, the comparison with 1927 grew increasingly^ favor-
able as the year wore on. The three major textile in-
dustries, to be sure, found it hard sledding during the
greater part of the year for most of their branches.
Overcapacity and under-employment still persisted in

[41]

Bell Telephone Quarterly

the coal industry, both before and after the abrogation
during the year*^of the Jacksonville wage scale in those
mines and districts where it was still actually or nom-
inally in force when the year opened. The newsprint
paper industry felt increasingly the effects of Canadian
competition. Only rather radical measures of restric-
tion of production enabled the oil industry to present a
more favorable picture at the close of the year than at
the beginning. Eailroad equipment manufacturers
still suffered from a continuance of the policy of meager
purchases of locomotives and freight cars by the coun-
try's transportation systems. Certain of the food and
allied industries felt the effects of competition and/or
surplus production, domestic or foreign. Automobile
tires were produced in record volume, but profits of
tire manufacturers were severely cut into by sharp de-
clines in the price of their principal raw material.

As against these and other relatively unfavorable
developments that might be mentioned were such favor-
able factors as the letting of a new high record total of
building contracts (to which increased residential, in-
dustrial, and public utility and public works projects
all contributed), something like record output of auto-
mobiles, highly active operations in the agricultural
implement and machine tool industries, a large volume
of business by electrical equipment manufacturers, and,
of course, underlying all these, an active iron and steel
industry, making a new high record output of steel.
Once the recovery from the recession in 1927 had been
achieved, furthermore, industrial activity ran along on
an even keel with little fluctuation, on the average, other
than of seasonal character. As employment gradually
increased, conditions in trade improved and the volume
of retail trade in the last quarter of the year, culminat-
ing in Christmas buying, was doubtless of record pro-
portions.

Prices of industrial conmiodities have on the aver-
age been firm and relatively stable. With certain

[42]

An Economic Review and Outlook

marked exceptions, such as rubber, with its sharp price
decline, and copper, which enjoyed a notable rise in
price, and hides, which moved widely in both directions,
there has been little evidence at any time in the i^rice
structure of tendencies toward serious weakness or
toward inflation or runaway markets. The stability
of domestic business at a high level and the maintenance
of reasonably satisfactory economic conditions abroad
have contributed to price stability, while the absence
not only of shortages of materials but of any factors
like transportation difficulties, major labor troubles,
ajid credit stringency, has prevented price inflation.

In the field of labor, the most important event doubt-
less was the abandonment of the Jacksonville wage
scale and the substitution of district for nation-wide
wage agreements in the bitmninous coal industry.
As has already been said, there were no major labor
troubles in 1928. Both wage increases and wage cuts
have occurred in various industries, but, on the whole,
the average level of wages has remained practically un-
changed. The year saw continued progress made in
the field of industrial relations. It saw only a partial
solution of what the article a year ago called a major
problem of 1927, that of unemployment; though by
the end of the year there were reports of shortages of
certain tj^Des of skilled labor.

Indications are that agricultural income for the
crop year 1928-29 will be little different from that of
the preceding year. Live stock prices have been at
good average levels during the year, benefiting stock
raisers. Grain and other crops have been generally
bountiful, though in many cases prices are low. Wliat-
ever the record sales of agricultural implements have
indicated as to improved farmers ' income, they at any
rate point to a continuing desire on the part of farmers
to operate with increasing efficiency.

The dollar figTires of net exports of commodities in
our international trade have already been cited. The

[43]

Bell Telephone Quarterly

increase this year over 1927 has been due both to lower
import values and to higher export values. The former
are accounted for principally by lower prices of rub-
ber, silk and sugar, rather than by decreased physical
volume ; to the latter, a substantial growth in exports
of finished manufactures, especially automobiles, ma-
chinery, and petroleum products, has been the principal
contributor. Changes in the sources or destinations of
our imports and exports have been relatively slight
and of little significance for the economic picture as a
whole.

No review of 1928 would be complete which did not
take cognizance of the merger and consolidation move-
ment, to which casual reference was made in the discus-
sion on finance. Perhaps no other year in our history
has been more notable in this field. Horizontal and
''circular" rather than vertical combinations predom-
inated. Economies of distribution quite as much as,
if not more than, economies of production were stressed
by the promoters of many of the mergers. This is not
the place to discuss the ramifications of the merger
movement. Suffice it to say that, what with mergers,
investment trusts, the ever widening operations of trade
associations and institutes, and the growing size of some
of our units of distribution, exemplified by the chain
stores and mail order houses, American business in 1928
moved noticeably in the direction of increasing concen-
tration of control of business processes. Incidentally,
very definite possibilities are involved therein for an
increasing degree of stabilization, through greater busi-
ness efficiency in every phase of operations. Labor, as
such, consumers, investors, and business generally
should benefit from intelligent use by management of
the opportunities afforded by the evolution that is

going on.

The Outlook for 1929

The year 1928 ended with industry and trade active
and generally prosperous. High money rates in 1928

[44]

Bell Telephone Quarterly

did not prevent business expansion, and expanded out-
put and keen competition did not prevent larger profits
from being made than were made in 1927. The reces-
sion in 1927 helped, to be sure, to pave the way for
greater output in 1928, partly because the recession was
to a considerable extent linked with special conditions
in the automobile industry which made for sharp re-
covery in that industry in 1928. Doubtless, too, the
stock market of 1928 was not without its stimulating
effect on business. The notable and unexpectedly large
voliune of construction activity, in the face of rising
money, however, had no specially favoring causes; it
apparently represented principally a continuance of the
forces that have sustained the ''building boom" for a
full half decade. Generally increasing business effi-
ciency clearly played a part in the satisfactory results
of 1928. So did improvement in the agricultural situa-
tion, in the broadest sense of that term. The excep-
tional prosperity of our northern neighbor, Canada,
undoubtedly was felt on our side of the border. Per-
haps these were the principal contributing factors to
the good business of 1928. Will they or other factors
make themselves felt in 1929 and sustain business at
or above present levels ? Or will they be overcome by
unfavorable forces?

Present indications are that business in 1929 will
have to take for granted moderately high money rates,
on the average. Only large gold imports and/or a se-
vere and prolonged reaction in stock prices could be
counted on to ease money rates ; apart from a change
in federal reserve policy. None of these three now
seems to be in the cards. Money rates, however, do
not promise to bring about any serious slowing up of
business. Prospects are for a very active first quarter
of the year and that period may hold the key to results
for the rest of the year. If production of automobiles
is pushed too hard and allied and ancillary industries
speeded up too much, a situation not dissimilar to that

[45]

Bell Telephone Quarterly

of 1924 may result, though the reaction may be much
less severe. If manufacturers generally and those re-
sponsible for construction activity hold operations
within bounds during the first quarter or first half of
1929, any subsequent slowing up should be of moderate
extent. There is no promise of 1929 being a boom year
as a whole. The year 1928 has apparently accom-
plished most of the climb up from the minor recession
of 1927.

Most of the stimuli that operated in 1928 are likely
to be less potent in 1929 in sustaining business. Our
large output of automobiles and of buildings, our ex-
tended credit structure on a reduced gold base, our dis-
tended stock market, the restriction on foreign borrow-
ing here, imposed by our high money rates,— all these
and other factors seem to point to no such gain in 1929
over 1928 as the latter achieved over the second half
of 1927. Yet there is nothing to indicate that a marked
business recession is in the making. We can take for
granted steadily increasing business efficiency, an inter-
national economic situation which is relatively favor-
able, no possibility of credit stringency for business,
generally satisfactory labor conditions, and an agri-
cultural situation which, if anything, is slowly on the
mend. In the framework of these, we may look for a
business year in 1929 which will on the average just
about measure up to the record of 1928 in volume of
activity, and perhaps also in profits.

P. E. RiCHTER.

[46 1

The Key Town Plan of Selling by
Telephone

KEY town selling, a plan for using the telephone
in the sales process, is one of the answers to the
present-day demand that distribution be simpli-
fied ; it is an expression of the effort, by fully employing
the tools of modern business, to keep step in distribu-
tion with the advances which have brought to America
world leadership in production. As competition
brought about a struggle for the national market, pro-
duction processes were challenged, analyzed, improved.
Greater production with lowered costs resulted ; but it
was a production which called for more consumers and
so for the further development of markets.

The substitution of machines for muscle ; the use of
men's brains rather than their brawn; the saving of
time and making saved time productive; these have
characterized the reduction of manufacturing to a sci-
ence. There, too, the telephone has played an increas-
ingly important part. A large saving is made by a
railroad shop when well placed telephones put a stop
to '^ walking to talk." The lifting of a receiver is a
substitute for many ten minute trips. Similarly an oil
refinery secures economies by making dial telephone
service available in its plant twenty-four hours a day,
seven days a week, so that well paid employees are able
to remain on their jobs and give them close supervision.

But with production still unproving its methods,
there has come to the attention of American business
the fact that distribution has not kept the pace. The
demand from those charged with selling, that more of
an article be supplied at a less cost, caused those in
production to study and change their methods in their
search for improvement and economy. But with the
lowered costs of producing, the percentage that distri-

[47]

Bell Telephone Quarterly

bution represents in the final cost of almost any article,
whether a product of the farm or factory, has steadily
increased until it has been authoritatively stated that
the greatest problem before American business today
is the reduction of these distribution costs.

Much has been done and many have contributed.
The railroads have effected economies by reducing the
time that goods are in transit, and by increasing the
number of ton miles per car. Methods of reaching the
consumer have undergone experiment, if not change.
The development of house-to-house selling, not one, in
the last analysis, to produce greater economy but prin-
cipally to further consumption, is one manifestation.
The chain store is another, with its purpose of reducing
overhead costs by better organization methods and of
eliminating credit losses by cash transactions. In other
retail stores changes have come about, with the dual
purpose of securing greater sales and a lowered per-
centage of overhead. Hardware and drug stores have
followed a policy of placing merchandise where it is
accessible to customers, eliminating, to a large extent,
show cases which form barriers between customers and
the goods they want.

Many of these latter activities have dealt with the
form of presentation of the merchandise to the ultimate
consumer. The element in the process of distribution,
however, which has come in for the greatest discussion
has been the middleman. Emphasis is given by the
fact that no effective substitute has been found for the
jobber and the wholesaler, and apparently none is in
prospect. A retail store, for example, selling items
produced by hundreds of different manufacturers, can-
not very well purchase all those items from that number
of individual manufacturers. Neither can those man-
ufacturers, who must sell their product to exist, ar-
range to do business directly with such a large number
of retail stores. Today the trend is towards reducing
rather than increasing the mmiber of accounts, at least

[48]

Key Toivn Plan of SeUinrj hy Telephone

as far as the retention of small, profitless accounts is
concerned. Even the chain stores, which may manu-
facture many of their own products, find it necessary
to provide for the jobbing or middleman's function.
They establish warehouses and distribution plants
which are neither more nor less than their o\YTi pro-
vision for the middleman's services.

And yet, necessary as it is to face the responsibility
of meeting, in distribution, the advances that have been
made in production, it can be safely said that there have
been but few economy-producing changes in methods
and practices made in the last twenty-five years. To
many of those which have been made the telephone has
contributed. For example, the use of the telephone
typewriter in expediting the handling of orders when
they are received at an office, particularly when the of-
fices and the warehouse are separated by some distance,
has resulted in large economies. Such internal im-
provements, however, are not enough. The main prob-
lem which confronts the middleman, whether he be job-
ber, or wholesaler, or manufacturer performing for his
own organization the function of the middleman by
selling directly to retailers, is that of reducing his sell-
ing cost so that the process of getting the retailer to
place on his shelves the merchandise he really w^ants,
and must have to satisfy the demands of his public, is
less expensive. There has been what might be termed
a vicious circle of selling. Increased production, one
of the accompanying factors of lowered cost, has re-
sulted in an increased pressure to sell. The increased
pressure to sell has resulted in an increase in the nmn-
ber of contacts with present and prospective customers
which, in turn, results in greater sales to be followed by
more production, to be followed by a demand for
greater sales, then more contacts, more sales, and so
on. The four points of the sales compass are, then :

1. More production

2. Demand for more sales

[49]

Bell Telephone Quarterly

3. More contacts

4. Increased sales

One of the basic principles of selling is that to sell,
salesmen must be in personal contact with customers.
Obviously, to sell more they must see more customers
or see customers more often, or both. The result is a
piling up of sales expense, more traveling, more men,
more supervision, which, as business becomes harder
to get, reduces the margin of profit. This, in addition,
has been affected by the development of hand-to-mouth
buying. During the post-war depression, when manu-
facturers, wiiolesalers, and retailers, all found them-
selves with large inventories on which they were forced
to take, in many instances, a heavy depreciation, there
developed as a fundamental the principle that stocks
on hand should not exceed foreseeable requirements.
This is particularly true of retailers, who developed
the habit of bujring in very small quantities. Some car-
ried this to excess, buying, for example, one sixth dozen
where a dozen or even a gross would be a proper pur-
chase for the period represented by any reasonable
tui'nover objective.

This adoption of hand-to-mouth buying has meant
that to secure orders, the sellers to a retailer must have
contacts with the retailer at the beginning of each of
the greatly shortened buying periods, particularly^ if
the goods sold happen to be of a competitive nature
where another manufacturer or another line might be
substituted. Some means, therefore, is sought by man-
ufacturers and wholesalers to secure the contacts which
are needed without the expense which the old system,
a system which has gone practically unchanged for
years, represents. One of these attemiDts, and a very
good one, was to maintain contact with customers by
mail during the intervals between visits. However, it
was learned by many, at their own cost, that it is rarely
the case that a letter will be successful in competition
with a salesman present in person, just as future

[50]

Key Town Plan of Selling Z>?y Telephone

deliveries always are at a disadvantage against spot
merchandise. It was found that the use of direct mail
matter was at its best as an aid to salesmen, just as
advertising in periodicals was found to be a helpful
support, and reduced the amount of work that the sales-
men had to do— decreased the amount of sales resist-
ance.

Supplementing this, other methods were tried to
save the time of the salesman and increase his effective-
ness. Telephone calls were placed, first from within
the same city and later, as the practice extended, from
other cities, telling the approximate time of a sales-
man's visit so that a greater proportion of his day
would be spent in doing the work for which he was
paid, selling in the presence of the customer.

It was not long before it was discovered that more
business than the making of appointments could be
handled by long distance telephone service. Just what
was the first instance which showed w^hat could be done
can only be surmised. It may be that a salesman, de-
layed by missing a train, finally beat his competitor to
some business by placing a long distance call, an occur-
rence of which there have been many instances. It may
be that a salesman, confined to his home or the hospital
by an accident, anxious to keep his hold on his territory,
turned to long distance service to maintain his business
contacts; and there have been many instances of this
also. It is also possible that when called for an ap-
pointment or about some other matter, the customer
gave his order over the telephone, saving a trip for the
salesman and suggesting an idea of which he was quick
to take advantage. In any case, those who, for one rea-
son or another, had tried selling by long distance turned
to it again and again until, in many lines of business,
it became a standard policy.

These pioneers developed two systems of selling by
telephone. One, known as the skip-stop system, in-
volved calling at every other town in a large territory

[51]

Bell Telephone Quarterly

on one trip, for example, during the first two weeks of
the month, and the other to^^^lS on the next trip; but
each time calling by telephone from the most convenient
points the towns which were being skipped.

Others developed the practice of calling all of the
cities in one trade territory from the principal city of
that territory, and then moving to the next trade center
and calling its tributary cities. Generally some pro-
vision was made, even under this central calling system,
for periodic visits in person, visits which could be made
somewhat longer and more personal than the hurried
calls when the visits were more frequent.

Sales managers discovered that star salesmen were
being developed who covered larger territories and did
more business, yet whose costs in relation to sales were
extremely low. The cost of calling all the cities in one
trade territory might be less than the cost of the rail-
road fare to one of the least important ones.

In this, many of those who are studying the problem
of more economical distribution believe they have dis-
covered one means of meeting the seemingly impossible
joint demand for more business and, therefore, more
frequent contacts, with lowered selling costs. As sales
executive after sales executive became aware of the
possibility, there was developed, based on the experi-
ence of those who were actually doing the selling, a
systematic plan for handling business in this manner,
called the Key Town Telephone Sales Plan. This Key
Town Telephone Sales Plan was neither more nor less
than the co-ordinating of the principles already dis-
covered in such a way as to get the greatest possible
return from this versatile tool of business, the tele-
phone.

The Bell telephone companies proceeded to map out
their territories, selecting key towns or primary calling
points, each associated with its appropriate trade ter-
ritory. These key to^\Tis were selected for a variety
of reasons which included their relation to normal trade

[52]

Key Town Plan of Selling hy Telephone

territories, their central location, railroad facilities,
hotel accommodations, etc. There entered also the
question of telephone facilities, toll centers, if smaller
cities were under consideration, receiving the prefer-
ence on account of the faster telephone service to be
secured. The primary areas were then broken down
into secondary areas. These secondary areas were
chosen on the same general considerations as primary
areas. The secondary areas were necessary for some
classes of trade. For example, a firm of wholesale gro-
cers would intensely cover smaller areas, doing business
with most of the retail grocers in each area, while the
manufacturer or jobber engaged in some other line
might find his market in relatively few cities. The
former would do their calling from the secondary key
towns to their closely placed customers in the secondary
calling areas; the latter from the primary key towns
to more widely separated customers in the larger, pri-
mary calling areas.

For most businesses using the key town plan a cer-
tain number of personal visits would be made, inter-
spersed between the telephone calls. Other businesses,
particularly those which are re-selling for the jobber
or wholesaler, such as is done by some match companies,
might use long distance calls exclusively, making no
personal visits at all. This is also true of a large pub-
lishing company, the magazine of which has a high sub-
scription rate. The continuations of subscriptions to
this magazine are usually secured by means of a toll
call from a primary calling point. Visits in person
would be out of the question, whereas in a day or two
a large number of long distance calls can be talked on,
and this unusual method of approach produces a very
satisfactory number of continuations.

All of the Bell operating companies have prepared
key town sales maps of the states in their territories,
available for the use of sales executives. In addition,
there is available a Key Town Telephone Sales Map

[53]

Bell Telephone Quarterly

[54]

Keij Toivn Plan of Sdling hy Telephone

of the United States showing all primary calling area
boundaries, and all primary and secondary calling
points, as well as a large proportion of the cities having
one thousand or more population. The key town desig-
nations and area lines have been shown in red to make
the map easier to use in plotting sales territories.
These maps are one of the aids furnished to facilitate
the use of the key town plan, and, therefore, to further
the use of toll service, making its use easier and more
convenient for customers.

The illustration of a section of the Michigan key
town map on the preceding page shows how primary
and secondary calling areas are arranged. The figures
shown in the zones are the station-to-station day rates
to points in the circle from the respective primary call-
ing points or key towns. The boxed figure at each
secondary calling point shows the average cost of call-
ing every business telephone subscriber in the area.

Other conveniences also contribute to the plan. The
first of the two most important is the use of sequence
toll call lists. The use of sequence lists is, of course,
not limited to those who are using the key town plan as
they are of value to anyone having several calls to make
from a particular point within a limited period of time.
If, for example, a sales manager knows that he is going
to call his thirty branch offices, he can receive the most
convenient service if he will prepare a list of those of-
fices with their addresses and, if possible, their tele-
2)hone numbers, and send it to the chief operator some-
what in advance of the time he wishes to talk. If it is
his practice to call these branch offices every week or
every two weeks the same list can be used indefinitely
and the time of both the sales manager and the tele-
phone company conserved.

The piu-poses of such lists are varied, but perhaps
the majority of the sequence toll call lists which are
filed are for the purpose of calling customers to main-
tain contacts and make sales. Oil companies, for ex-

[55]

Bell Telephone Quarterly

ample, file them to exjDedite giving price changes ; pro-
duce companies make a practice of using such lists to
inform their customers of current market offerings;
financial houses with long lists of widely scattered cus-
tomers who buy frequently use sequence lists to call

(Sec Rcmsc S,dc jor Sugscsliow <u to Ihe Uu »/ I

SEQUENCE TOLL CALL LI

his Form)

ST

.1ST NUM

CODE

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(••■il

:alling company on party.

"•ERSONS WHO WILL TALK

'"""

WHEN SEBUir.F nFSIHFn*

A. M.
P. M.

-^^\'^r

.':.::\i::::.

s E R VI cE *i s w« nTe'd rn'oi**

*«■ DIS-
Of CfftL

,lL\',zh'.\hCol

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these customers' attention to favorable offerings.
These sequence lists are also used by those employing
the key town plan, who welcome them as a means of
making this sales method more convenient and rapid.

Their use is necessary in connection with the second
important aid for those using the key town plan. This
is the Bell System Credit Plan. It provides a way for
responsible concerns to arrange for credit for their
traveling representatives, thereby eliminating the ne-
cessity of carrying funds for the pajnnent of charges
on toll calls. At the same time it gives a better control
and check at the company's home office of the sales ac-
tivities.

For example, if a company should desire to adopt
the key toAvn plan, it would first designate the article
or articles to be sold and the personnel to be assigned
to selling. Lists of customers would then be compiled
to be called from the selected key towns. Because in-
tensive coverage at a minimum of expense is possible
with the key town plan, reference may well be had to

[56]

Key Toivn Plan of Selling 'by Telephone

the classified business telephone directories as a valu-
able source of information as to all the prospects in any
line of business. The customers called from a partic-
ular key town would be those within the designated
calling area of that city, as these areas are selected wdth
a view to reducing the cost of calling the business sub-

Bell System

IDENTIFICATION CARD

1928 No.

This will identify
representative of the

WHICH HAS ARRANGED THAT CREDIT BE EXTENDED TO SAID REPRESENTATIVE ON CHARGES
FOR SERVICE RENDERED OVER BELL SYSTEM LINES UNTIL DECEMBER 3IST|928
AS SHOWN BY AND SUBJECT TO THE CONDITIONS ON THE BACK HEREOf
VALID WHEN COUNTERSIGNED BY

COUNTERSIGNATURE

scribers, or any selected group of such subscribers,
within the area. Arrangements would be made at the
same time with the Bell Associated Company in whose
exchange the concern is located for the issuance of Bell
System identification cards under the credit plan.
These cards would be issued to all of the salesmen and,
equipped with them, the salesmen could then file and
talk on their calls at any Bell office, having the bills
sent to the home office of their company.

At many exchanges, and the number is gradually
increasing, the Bell telephone companies are providing
special facilities for those selling by telephone. Cus-
tomers' rooms are being installed, equipped with tele-
phones and desks so that the salesmen can talk on their
calls with privacy and comfort.

It is not too early to know that the use of the key

[57]

Bell Telephone Quarterly

town telephone sales plan has already begun to occupy
an important place in the business life of America.
National advertising and co-ordinated, aggressive sales
activities have resulted in a marked stimulation of in-
terest in key town selling. It is only reasonable that
in a country which has the largest percentage of the
world's telephones, far-sighted business men should
take advantage of the opportunity these telephones af-
ford to do a greater volume of business at a less ex-
pense ; a function that is appropriate to the telephone,
which has always been the means of saving the time of
the individual, yet increasing his effectiveness, through
the ability to transport his ideas and his personality
instantaneously over intervening miles.

Richard Whitcomb.

Editor's Note: Mr. Whitcomb is of the staff of The Commercial Engineer
of The American Telephone and Telegraph Company.

[58

Notes on Recent Occurrences

PRESIDENTS' CONFERENCE

A CONFERENCE of Presidents of Bell System
companies took place at Yama Farms, New York,
from October 2 to 8.

PLANT OPERATION CONFERENCE

THE Plant Operation Conference held at Pine-
hurst, North Carolina, from October 22 to 31, was
the first System conference devoted entirely to plant
activities. Previous conferences have been held jointly
with the Engineering Departments, but the growth of
the supervisory personnel and the increasing impor-
tance and diversity of the subjects to be discussed have
made separate conferences desirable. The total attend-
ance was approximately 110, the Associated Companies
and the Long Lines Department being represented by
their thirty-two General Plant Managers, with about
the same nimiber of Division Plant Superintendents
and several Vice Presidents and General Managers.

Prior to the conference, a number of regional com-
mittees, each composed of from three to five General
Plant Managers, undertook the study of some of the
more unportant phases of plant operations, including
plant engineering, construction, installation, mainte-
nance, plant employee training, plant staffs, and va-
rious plant phases of service to the subscriber. The
committee's reports were presented at the conference
by the respective chairmen, following introductions by
members of the General Staff. Matters pertaining to
supplies, motor vehicles, plant employee representation
and plant emplo}Tiient conditions, together with the
matter of sale of service, were presented by the General
Staff. The presentations were followed in each case
by prepared discussions given by those Plant Managers

[59]

Bell Telephone Quarterly

who had indicated in advance their desire to discuss
the particular subject covered by the report. This was
followed, in turn, by an open discussion on the floor.

Throughout the conference, particular emphasis
was placed on giving a plant service which would be in-
creasingly satisfactory to the telephone using public.
The discussion related largely to ways and means of
making further improvement along such lines as re-
ducing service interruptions, reducing the out-of-serv-
ice time when interruptions do occur, extending the
hours during which repair service is available, more
closely meeting the customer's desires with respect to
the time of installing and moving his telephone and
insuring a prompt, courteous and intelligent treatment
of subscribers in all of their contacts with plant em-
ployees. Emphasis was given also to the desirability
of a more intensive application of accident prevention
measures, improvement in aj^pearance of plant, sale of
service by plant employees, and the advance program-
ming of plant work, and particularly improved train-
ing of all the plant forces.

An exhibit room was set up in which were shown
a number of the more recent developments in equip-
ment, methods and practices.

At an evening session, demonstrations were given
of the effects of power arc follow-up during lightning
storms and a stereopticon illustration of the effect of
circuit defects on transmission.

During the conference, the General Plant Managers
were asked to designate the particular activities which
they considered the most important ones on which to
focus plant effort during the next two years. In their
replies, the following ten items were mentioned most
frequently.

1. Training of jDlant employees.

2. Accident prevention.

3. Increased speed of installing and moving tele-

phones.

[60 1

Notes on Recent Occurrences

4. Improving the grade of outside plant maintenance.

5. Sale of service by plant employees.

6. Improving the grade of substation and P.B.X.

switchboard maintenance.

7. Improving transmission.

8. Personalizing the service and improving customer

contacts.

9. Clearing subscribers' troubles more promptly.
10. Reducing troubles affecting subscribers' lines.

Talks on matters of particular interest were given
by Mr. Page, Mr. Hall, Mr. Gherardi, Mr. Waterson,
Mr. Charlesworth, Mr. Wilson, Mr. Allen and Mr.
Burcher, chairman of the conference.

The conference covered thoroughly all the more im-
portant phases of plant operations and the committee
representing the Associated Companies expressed the
opinion, which was also that of the General Staff, that
the conference had been especially effective.

TRANSMISSION CONFERENCE

THE transmission engineers of the Bell System met
in conference at 195 Broadway, New York City,
from November 14 to 22, to discuss ways and means for
further improving telephone transmission, and securing
greater continuity of service of the plant. The con-
ference was attended by about 50 representatives of
the Associated Companies, the Long Lines Department
of the American Company, and the Bell Telephone
Company of Canada and also by various officials and
members of the Headquarters staff in New York.

The conference was opened by H. S. Osborne, Trans-
mission Engineer of the A. T. & T. Company, who also
presided throughout the sessions. The various sched-
uled subjects were briefly presented and discussed in
short papers prepared by both Associated Company and
A. T. & T. Company representatives, after which con-
siderable time was devoted to general discussions and

[61]

Bell Telephone Quart ei^ly

questions on each subject. A general outline of a pro-
gram of improvement in toll transmission was dis-
cussed, followed by more detailed discussions of toll
transmission surveys, toll cable problems, switched toll
connections, carrier problems, modernizing low quality
plant, etc. The program for further improving local
transmission was covered, including specific discussions
of local plant design and special subscribers' services.
This was followed by the general subject of transmis-
sion maintenance, including transmission service ob-
servations, reports of poor transmission, station and
loop maintenance and toll transmission maintenance.
Connecting company and rural line transmission prob-
lems were considered very fully. The discussions on
inductive co-ordination covered particularly the trend
of power companies' practice, the prevention of noise
in local telephone plant from both external and internal
sources and low frequency induction. Other subjects
discussed included foreign wire relations, protection
and telephone service to power companies. Transmis-
sion training work w^as also very fully discussed by
the conferees. One session was devoted to a presenta-
tion of transmission development matters by O. B.
Blackwell, Transmission Development Engineer and
members of his staff, and by H. S. Warren, Electrical
Interference Engineer.

President Walter S. Gifford addressed the confer-
ence, pointing out that in spite of the tremendous
strides which the telephone business has made there are
still a large number of important problems before the
telephone organization in the further improvement of
service and indicating the great responsibility of those
concerned with transmission work in the further prog-
ress for which the telephone organization is working.
He emphasized particularly the further miprovement
of transmission on short and moderate haul toll busi-
ness and the problems involved in providing improved
service to rural communities as two of the outstanding

[62]

Azotes on Recent Occurrences

activities to whicli it is important that increased atten-
tion be directed at the present time.

Dui'ing the conference there were also addresses by
Vice Presidents Bancroft Gherardi, F. B. Jewett, and
A. W. Page of the A. T. and T. Company on general
Bell System matters. T. G. Miller, General Manager
of the Long Lines Department, outlined the problems
of that department. C. G. StoU, Vice President of the
Western Electric Company, Inc., addressed the con-
ferees on Western Electric Company, Inc., matters
pointing out the need for a close co-operation between
the Operating Companies and the Western Electric
Company, Inc., in regard to scheduling telephone sup-
plies and equipment. Operating matters from both the
traffic and plant standpoints were re\dewed by K. W.
Waterson, A. J. Allen, M. B. French, and D. C. Hos-
feld, and commercial matters by L. B. Wilson. H. P.
Charlesworth reviewed the plant engineering activities,
including the five-year program, rural lines and con-
necting company problems, improvements in the ap-
pearance in the telephone plant and other matters in
which the transmission engineers are directly con-
cerned.

The sessions of the conference were supplemented
by inspection trips to the Bell Telephone Laboratories
and the Western Electric works at Kearny, and by ex-
hibitions of demonstration apparatus for showing
transmission losses and power arc follow-ups, and by
a number of other exhibits.

GENEEAL STATISTICAL CONFERENCE

A GENERAL Statistical Conference of the BeU
System was held in New York City from Decem-
ber 3 to 8, attended by those in charge of statistical work
in the Accounting Departments of the Associated Com-
panies and by certain staff representatives of the Amer-
ican Telephone and Telegraph Company.

[63]

Bell Telephone Qiiarterh/

The purpose of the Conference was primarily to
afford an opportunity for the discussion and review
of the progress which has taken place during the three
and a half year period since the preceding Conference
in the development of statistical analysis and presen-
tation of accounting and other data as administrative
aids. In the light of the experience of the Companies
to date, there was general discussion of the most profit-
able lines of future development of such statistical work
and careful consideration was given to the general char-
acter of these statistical activities which will make them
most valuable. An important subject considered by the
Conference related to the types of statistical work best
adapted to meeting the needs of area operating organi-
zations.

Emphasis was placed upon the importance of select-
ing significant facts, of designing statistical work to
meet individual needs, and of adjusting current work
in accordance with changing requirements, in order that
the statistical work of the Accounting Departments
may at all times be of greatest service to the business
as a whole.

During its proceedings, the Conference was ad-
dressed by President Gifford, Comptroller Heiss, and
Assistant Comptroller Behan.

FURTHER EXTENSIONS OF TRANSATLANTIC
TELEPHONE SERVICE

Danzig

ON October 15 transatlantic telephone service was
extended to the Free City of Danzig in Europe.
Danzig has a population of 400,000 in an area about 27
miles square. The municipal govermnent operates the
telephone system comprising 17,200 telephones. Con-
nection with America is effected through a submarine
telephone cable under the Baltic Sea connecting Danzig
\vith Germany.

[64]

Notes on Recent Occurrences

Ontario and Quebec

Facilities of the transatlantic telephone service,
which had previously been opened only to certain speci-
fied Canadian cities, were made available on October
15 to all points in the provinces of Ontario and Quebec.

Spain

Telephone service between North America and Mad-
rid was inaugurated by conversations between Presi-
dent Coolidge and King Alfonso XIII on October 13.
The ceremonies at Washington took place in the di-
rectors' room of the United States Chamber of Com-
merce. President Walter S. Gifford of the American
Telephone and Telegraph Company acted as master of
ceremonies at Washington, while Colonel Sosthenes
Behn, President of the International Telephone and
Telegraph Corporation, acted in a similar capacity in
Madrid.

Addressing King Alfonso, President Coolidge said:
''I welcome this added link, no less strong because it
is invisible, between Spain and the United States. I
believe it to be true that when two men can talk to-
gether the danger of any serious disagreement is im-
measurably lessened and that what is true of individ-
uals is true of nations. The international telephone,
therefore, which carries the warmth and the friendli-
ness of the human voice, will always correct what might
be misinterpreted in the written word.

''Whatever brings our two coimtries closer is of
value to us and to the world. This western hemisphere,
discovered by the wonderful navigators of Spain,
has always owed much to your country. The language
of Spain is the language of a great part of the Amer-
icas. The fine traditions of Spain are the basis of the
culture of a large part of the Americas and our friend-
ship with the great nations to the south draws us closer
to their mother country. With your country and with

[65]

5

Bell Telephone Quarterly

theirs the United States stands for the promotion of
world understanding and peace. I was therefore par-
ticularly pleased that Spain so promptly and gener-
ously adhered to the general pact for the renunciation
of war. It was what I expected on the part of your
great and peace loving nation.

*'I am especially glad thus orally to greet your Maj-
esty because I know the position of great personal re-
sponsibility you hold in directing the policies and prog-
ress of your country. I wish for Your Majesty a long
and happy life and for your country all the prosperity
and happiness which come from wise and benevolent
leadership in all those things which make life richer and
finer. ' '

King Alfonso, speaking in English, replied:

**I heartily reciprocate in my own name, and in that
of Spain, the greetings of Your Excellency.

*'Mr. President: I thank you for the cordial words
in which you do Spain the honor and justice to recog-
nize her outstanding services to the Americas, and I
agree that we ought to expect from this new means of
communication ever closer relations because of the in-
timate and more perfect understanding between the two
peoples.

^'I reiterate to Your Excellency with my salutations,
the testimony of my most sincere appreciation, and ex-
tend best wishes for the peace and prosperity of the
United States."

J. Keuben Clark, Assistant Secretary of State,
spoke in behalf of the State Department at Washing-
ton. His greeting was acknowledged by Ambassador
Ogden H. Haromond, speaking from Madrid, as fol-
lows:

**It is a great honor to be the first American Am-
bassador to Spain to communicate with the Department
of State by means of this wonderful invention of wdre-
less telephony, which brings Spain and the United
States so close together.

[66 1

Notes on Recent Occurrences

''The point has often been made that easy and rapid
conunimication prevents misunderstanding. To my
mind they may do much more, they not only augment
existing friendships but create new ones and this tele-
phone service inaugurated today, on the eve of the meet-
ing of all of the Americas at the Sevilla Exposition,
forges another and valuable link in our chain of friend-
ships."

Greetings were also exchanged between President
Walter S. Gifford and the Marques de Urquijo, Presi-
dent of the National Telephone Company of Spain.
Mr. Gifford said:

''Although I have been in the telephone business all
my life, I confess it gives me a thrill to talk over the
lines of four countries, through the air over the ocean,
under the sea by cable, over the Pyrenees, and to get
from you in a fifth of a second a message from the coun-
try whence Colmnbus started upon his momentous jour-
ney, based on the belief that the world was round.
Faith in science led to the discovery of this continent
and as his spiritual successors we firmly believe that
science is and will continue to develop it to the increas-
ing comfort, effectiveness and happiness of man. And
it is a pleasure for us to work in co-operation with those
engaged elsewhere in advancing the telephone art. My
colleagues and I extend to you our congratulations for
the success of the National Telephone Company of
Spain."

The Marques de Urquijo replied:

"Thanks to the co-operation of the French Post
Office, through whose territory we pass, and the co-
operation and facilities of the British General Post
Office with its Rugby Radio Service, it has been possible
for his Majesty the King to greet the President of the
United States and inaugurate the telephone service be-
tween Spain and the United States. It is also my
privilege to greet you, Mr. Gifford, as President of the
great American Telephone and Telegraph Company,

[67]

Bell Telephone Quarterly

which company has been a constant inspiration in the
development of our Spanish Telephone Company over
which I have the honor to preside. May I extend to
you and your colleagues my most cordial salutations."

A month later, on November 14, King Alfonso again
participated in the opening of telephone service to an
American country when he exchanged felicitations with
General Gerardo Machado, President of Cuba. Speak-
ing from Madrid, King Alfonso said:

''Mr. President: It gives me great satisfaction to be
able to communicate by telephone with the chief of the
Cuban nation. Your country, inspired by your Excel-
lency's heartfelt sentiments, has been giving constant
proofs of its devotion to Spain which both my country
and I reciprocate with genuine sincerity."

General Machado replied in part:

''Your Majesty: I am experiencing at this moment
one of the greatest emotions of my life, because I am
able to communicate with Your Majesty and to express
to you the profound happiness which I feel in spealdng
with the august head of the nation which discovered
and colonized our hemisphere."

The Cuban President was then greeted by General
Primo de Rivera, President of the Council of Minis-
ters of Spain, and the Cuban Secretary of State, Dr.
Rafael Martinez Ortiz, replied. An exchange of
greetings between Dr. Ortiz and the Cuban Ambassador
at Madrid, Honorable Dr. Mario Garcia Kohli, fol-
lowed; and General Primo de Rivera then spoke with
Sr. Alvero de Baldonado, Charge d 'Affaires of the
Spanish Embassy in Havana. The ceremonies were
concluded with an exchange of greetings between of-
ficials of the National Telephone Company of Spain
and the Cuban Telephone Company.

On November 26 the telephone service connecting
North America and Madrid was extended to embrace
the whole of Spain, which has approximately 141,500
telephones serving a population estimated at 22,450,000.

[68]

Notes on Recent Occurrences

Mexico-Eueope

Transatlantic telephone service, which was already
in effect between Europe and a number of important
cities in Mexico, was extended on November 1 to the
city of Puebla, Mexico.

Austria

On November 3 Vienna, the capital of Austria,
eleventh largest city in the world, was connected with
the transatlantic telephone circuit. Vienna has a pop-
ulation of nearly 2,000,000 and is served by 110,000
telephones.

The service was opened with conversations between
Chancellor Dr. Seipel of Austria and Secretary of State
Kellogg in Washington, and between other American
and Austrian officials. Dr. Seipel said:

''I have it at heart to express my sincere joy that
modern technical science has succeeded in bringing our
countries nearer by means of this further facility of
international conmiunication. ' '

Mr. Kellogg replied in part:

''With this new means of communication we shall
have closer relations than ever."

Hungary

Budapest, the capital of Hungary, was brought
within the scope of the transatlantic telephone service
on November 12. Service was formally opened with
the transmission of greetings from President Coolidge,
transmitted by Secretary of State Kellogg who, speak-
ing from Washington, said to Count Bethlen, Premier
of Hungary, in Budapest:

"The President has asked me to extend through
you to the Regent and people of Hungary, on behalf
of himself and the people of the United States, cordial
good wishes for the continued i^rosperity and happiness
of the Hungarian people.

[69]

Bell Telephone Quarterly

''The opening of this service will bring to your coun-
trymen and my fellow-citizens of the United States the
realization that our peoples are being brought closer
together every day by the progress of science in thus
establishing direct telephonic communication between
the two countries, and it is with a feeling of great pleas-
ure that the people of the United States of America
inaugurate direct communication with your people to-
day. I wish to tell you also how sincerely happy I am
to hear your voice and to feel that we have thus estab-
lished a new bond in the relations between our two coun-
tries. ' '

Conversations also took place between J. Reuben
Clark, Assistant Secretary of State, and J. Butler
Wright, American Minister at Budapest; and between
John Pelenyi, Hungarian Charge d 'Affaires at Wash-
ington, and Count Bethlen.

Hungary was the fifteenth European nation to be
brought within speaking distance of America. Buda-
pest has about 50,000 telephones serving nearly a mil-
lion people.

Czechoslovakia

On November 24 Prague, the capital of Czecho-
slovakia, was added to the European points accessible
over the transatlantic telephone circuit. Prague has a
population of about 725,000 with 34,000 telephones.
The service to Prague was opened with an exchange
of felicitations between Secretary of State Kellogg and
Dr. Edouard Benes, Foreign Minister of Czechoslo-
vakia, who also spoke ^uth Ferdinand Veverka, the
Minister of Czechoslovakia at Washington. In his
conversation with Dr. Benes, Secretary Kellogg said:

"It gives me a great pleasure to greet you in the
name of the govermnent and people of the United
States upon the occasion of the inauguration of the
telephone service between our two countries.

"It is most impressive to me to think of our voices
bridging the space and distance between us at one

[70]

Notes on Recent Occurrences

bound and I cannot but feel that the result of the link-
ing together of our two countries by this new means
of communication will be the further increasing of the
friendly ties of sympathy and understanding which
have existed between our two peoples since the estab-
lishment of your state."

In the course of his reply Dr. Benes said:
''Direct telephonic commimication brings our nation
still closer to the North American nation, whom we
esteem so highly for their momentous share in our
struggle for liberty and whose sons made such sacrifices
in the conmion fight and who play the role of pioneer
in the daily economic and cultural life of the world."

Spanish Morocco, Africa

Transatlantic telephone service between North
America and Europe reached a point in still another
continent— Africa— on November 26 when connection
was established with Ceuta, Spanish Morocco, Africa,
which is linked to the telephone system of Spain by
submarine cable across the Strait of Gibraltar.

France

Transatlantic telephone service, which has included
Paris since March 28, 1928, was extended on December
15 to embrace about one hundred points in Prance cov-
ering practically the entire coimtry and including 532,-
800 telephones. With this extension of service the
total of American and European telephones which may
be interconnected by means of the transatlantic circuit
is brought to approximately 26,750,000.

COMSTOCK PEIZE TO C. J. DAVISSON

The National Academy of Sciences has awarded the
Comstock Prize to Clinton J. Davisson, of the Bell Tel-
ephone Laboratories staff of scientists. This prize is
given each five years for "the most important discovery

[71]

Bell Telephone Quarterly

or investigation in electricity or magnetism or radiant
energy"; this year it amounts to $2,300. It was
granted ''for experimental work demonstrating that
nnder certain conditions electrons behave as trains of
waves might be expected to behave. ' '

Presentation of the award was made at the Autumn
Meeting held at Schenectady, November twentieth, by
Br. Thomas Hunt Morgan, President of the Academy.

DR. FRANK B. JEWETT AWARDED EDISON

MEDAL

THE seventeenth Edison gold medal has been
awarded by the American Institute of Electrical
Engineers to Dr. Frank B. Jewett, Vice President of
the American Telephone and Telegraph Company, in
charge of the Department of Development and Re-
search, and also President of the Bell Telephone Lab-
oratories, New York City, "for his contributions to the
art of electrical communication."

The Edison gold medal "for Meritorious Achieve-
ment in Electrical Science, or Electrical Engineering,
or the Electrical Arts," was founded in 1904 by the
friends and associates of Thomas A. Edison in com-
memoration of the first quarter century in the art of
electric lighting. The medal was "to serve as an hon-
orable incentive to scientists, engineers and artisans, to
maintain by their works a high standard of accomplish-
ment." It was designed by James Earl Frazer and
bears on its obverse a portrait of Mr. Edison and on
its reverse an allegorical conception of "the genius of
electricity crowned by fame. ' '

It is interesting to note that Dr. Jewett began his
work in the Bell System the year of the establishment
of the Edison medal. After graduate study at Chicago
University and two years of teaching at Massachusetts
Institute of Technology, he entered upon his life work
of telephone engineering. As Transmission Engineer
he did notable pioneer work in the development of the

[72]

Notes on Recent Occurrences

theory and practice of voice transmission over wires.
As Chief Engineer of the Western Electric Company
and later as Lieutenant-Colonel of the U. S. Signal
Corps, he served with distinction on army and na\^
committees dm-ing the World War. The Distinguished
Service Medal was awarded to him. Combining high
technical skill and unusual executive ability, Dr. Jewett
has directed the work of a large group of scientists and
engineers who seek to advance the communication art
in all of its ramifications. Author of brochures, ar-
ticles, and public addresses on physical and electrical
subjects. Dr. Jewett occupies a prominent place in pro-
fessional engineering societies and educational circles.

The formal presentation of the medal to Dr. Jewett
will occur on the evening of January 30 during the an-
nual mid-winter convention of the American Institute
of Electrical Engineers, held in New York.

Alexander Graham Bell, inventor of the telephone,
was awarded the Edison medal in 1916, and Gen. J. J.
Carty, Vice President of the American Telephone and
Telegraph Company, was the recipient in 1918.

Me. Gifford is U. S. Steel Dieector

On December 18 President Walter S. Gifford of the
American Telephone and Telegraph Company was
elected a Director of the United States Steel Corpora-
tion.

73]

Abstracts of Technical Papers from Bell
System Sources

Decibel— The Name for the Transmission TJnit^ by
W. H. Martin. In this article is defined the transmis-
sion unit that was adopted by the Bell System in 1923
for expressing telephone transmission efficiencies and
levels. A brief outline is given of the reasons for the
adoption of the name *' decibel" for this unit.

The Principles of Electric Circuits Applied to Com-
munication,^ by H. S. Osborne. This paper discusses
the method of presenting in the curricula of engineer-
ing schools the fundamental electrical principles em-
phasizing the desirability of presenting them as far
as practical in a general way and of making clear the
relations of specific applications, such as the relation
between circuit theory equations as applied to power
systems and to telephone systems, and the relation be-
tween ordinary circuit theory and the generalized elec-
tromagnetic equations. An outline is given of some
interesting problems arising and results obtained in
the application of electric principles to telephone sys-
tems.

Magnetic Properties of Perminvar/ by G. W. El-
men. This paper describes the magnetic properties
of a group of iron-nickel-cobalt alloys, named ^'permin-
var." With certain heat treatments these alloys have
unusual constancy of permeability and extremely small
hysteresis losses at low flux densities, and peculiarly
shaped hysteresis loops constricted in the middle as

1 Bell System Teclmical Journal, January, 1929.

2 Bell System Technical Journal, January, 1929. Presented at Pitts-
burgh, July 18, 1928, at the Summer School for Electrical Engineering Teach-
ers under the auspices of the Society for the Promotion of Engineering Ed-
ucation.

3 The Journal of the Franklin Institute, Vol. 206, No. 3, September, 1928;
Bell System Technical Journal, January, 1929.

[74]

Abstracts of Technical Papers

the maximum flux densities of the loops are increased.
Methods of preparing and heat treating the alloys are
described, limits of composition, and changes in the
magnetic properties mth composition and with differ-
ent heat treatments are illustrated. A theory of con-
stitutional changes effected by heat treatment and re-
sponsible for the unusual magnetic properties is sug-
gested.

The Aluminum Electrolytic Condenser* by H. O.
Siegmund. In this paper the anodic film-forming
properties of aluminum are discussed and the unique
electrical qualities of film-coated aluminum anodes are
described. Special reference is made to an aluminum
electrolytic condenser of the type used in low pass elec-
tric wave-filters of direct current telephone power
plant equipment. Electrical characteristics of con-
densers are given and the manner is described in which
the operation and life of the units are influenced by
variations in composition of the electrodes and the
electrolyte.

Contemporary Advances in Physics XVII. The
Scattering of Light with Change of Frequency,^ by Karl
K. Darrow. This article deals chiefly with one of the
most interesting and important developments in phys-
ics during 1928, which may be described as the recog-
nition that quanta or corpuscles of light may be re-
flected from molecules or atoms in such a way, that in
the process they give up some of their energy to the
reflecting particle, or take some energy from it. Owing
to these transfers of energy the frequencies of the
quanta are changed, a fact which is expressed by saying
that light is scattered with change of frequency or
change of wave-length. Several diif erent cases of this
effect have been discovered, the earliest-known being

4 Bell System Technical Journal, January, 1929. Presented before the
American Electrochemical Society at Bridgeport, Conn., April 26, 1928.
6 Bell System Technical Journal, January, 1929.

[75]

Bell Telephone Quarterly

the scattering of X-rays with change of frequency by
free or nearly free electrons, the "Compton effect";
while the one which directed attention to the general
principle, the scattering of visible light with change of
frequency by organic liquids, was discovered by Eaman.
The principle itself corresponds closely to a similar one
for electrons, and emphasizes the resemblance between
electricity and light.

Ground Return Impedance: Underground Wire
ivith Earth Returns' by John E. Carson. In certain
transmission problems principally those relating to
induction and interference phenomena, it is necessary
to know the transmission characteristics of a circuit
composed of an underground wire with earth return.
These can be evaluated by well known engineering
formulas provided the ground return impedance is
known. The present paper gives the mathematical so-
lution of this problem and shows that the ground return
impedance is substantially independent of the depth of
the wire below the surface.

Application to the Binomial Summation of a Lapla-
cian Method for the Evaluation of Definite Integrals'
by E. C. Molina. The numerical evaluation of the in-
complete Binomial Summation, a problem of major
importance for many statistical and engineering ap-
plications of the Theory of Probability, is a question
for which a satisfactory solution has not as yet been
obtained. Several approximation formulas have been
presented, each of which gives good results for some
limited range of values of the variables involved; but
a formula of wide applicability is still a desideratum.

The purpose of this paper is to submit for considera-
tion an approximation formula which seems to meet the
situation to a measurable extent.

6 Bell System Technical Journal, January, 1929.

7 Bell System Technical Journal, January, 1929. Presented before Inter-
national Congress of Mathematicians at Bologna, Italy, in September, 1928.

[76]

Abstracts of Technical Papers

A New Method of Obtaining Transient Solutions of
Electrical Networks,^ by W. P. Mason. A new method
for obtaining transient solntions of electrical networks
is developed in this paper which depends upon the fact
that a distortionless line can be made to approach as
a limit all three of the circuit elements, resistance, in-
ductance and capacity. The process of solution con-
sists in solving for the current in a distortionless line—
which is ordinarily a simple process— and then proceed-
ing to the limiting case of the distortionless line which
approaches the element or elements of interest. Some
examples are worked out and a derivation of the La-
placian integral solution is given. It is interesting to
note that this method gives a formal solution of the
Laplacian integral equation.

Acoustic Considerations Involved in Steady State
Loud Speaker Measurements/ by L. G. Bostwick.
Certain difficulties encountered in acoustic measure-
ments of the performance of loud speakers are de-
scribed. Because of the nature of these difficulties it
has not yet been possible to specify a complete and
simple set of measurements or conditions which will
completely express the performance of a loud speaker.
Data are given showing the performance of two repre-
sentative types of loud speakers both when measured
in outdoor space free from reflections and w^hen meas-
ured mider varying conditions in a specially treated
acoustic laboratory. The differences serve to empha-
size the importance of certain precautions in the mak-
ing of indoor acoustic measurements.

Recent Advances in Wax Recording/" by H. A.
Frederick. This paper considers chiefly the fre-
quency-response characteristics and limitations of the

8 Bell System Technical Journal, January, 1929.

9 Bell System Technical Journal, January, 1929.

10 Bell System Technical Journal, January, 1929. Presented before So-
ciety of Motion Picture Engineers at Lake Placid, New York, September 26,
1928.

[77]

Bell Telephone Quarterly

lateral cut *'wax" record. It shows that the frequency
range from 30 to 8,000 cycles can be recorded and re-
produced from the record with practically negligible
deviation from a flat frequency-response characteristic.
The paper brings out the ease with which the record
can be immediately replayed from the "wax" as an
aid in assisting the artist to obtain the best results.
A brief description is given of conunercial processing
methods including both plating and pressing. These
methods give essentially a perfect copy of the original
" wax. " The time required for this work has been con-
siderably reduced of late so that a test pressing can be
obtained within three hours of the cutting of the orig-
inal "wax."

Sound Reco7'ding with the Light Yalve,^'^ by D. Mac
Kenzie. The light valve developed by Bell Telephone
Laboratories is an electromagnetic shutter consisting
of a loop of duralumin tape formed into a slit at right
angles to a magnetic field. Sound currents from the
microphone and amplifier flow in this loop causing it
to open and close in accordance with the current va-
riations.

The slit is f ocussed by a lens on the sound negative
film. An incandescent ribbon filament is focussed on
the light valve, and the light passed by the undisturbed
slit appears on the film as a line at right angles to the
direction of the film travel. As the valve aperture is
modulated by sound currents, the film receives a vary-
ing exposure and a sound record of the variable density
type is obtained.

For talking pictures such a sound film is made on
a separate recording machine synchronized vaih. the
camera and is printed alongside the picture on the fin-
ished positive. The prints are displaced so that the
sound is advanced over the corresponding picture.

11 Bell System Technical Journal, January, 1929. Presented before So-
ciety of Motion Picture Engineers at Lake Placid, New York, September 25,
1928.

[78]

Abstracts of Technical Papers

This is in order that the sound may be projected at a
point of continuous film motion below the picture gate.

Synchronization and Speed Control of Synchron-
ized Sound Pictures,^"" by H. M. Stoller. The repro-
duction of the synchronized sound picture of today pre-
sents no serious problem of synchronization, for this
factor has been practically eliminated by the perfec-
tion of electrical means for reproducing sound with
equipment which may be coupled mechanically to the
picture projector.

The important problem of the present day, in con-
nection with the reproduction of synchronized sound
pictures, is the provision of suitable means for main-
taining a constant speed of the sound reproducing
mechanism in order that the pitch of the sound being
reproduced may not suffer any sudden change which
would be sensed by a good musical ear. Control cir-
cuits using vacuum tubes with a frequency bridge as a
speed standard with provision for manual variable
speed control are described and explained for use with
both AC and DC motors. Remote synchronization per-
mitting the recording of pictures and sound simultane-
ously on equipment located some distance apart is ob-
tained by a modification of the Michalke electric gear
system.

A Sound Projector System for Use in Motion Pic-
ture Theatres, "-^ by E. O. Scriven. The general prob-
lem involved in the design of a system suitable to be
used to record and reproduce sounds such as are re-
quired for "talking" motion pictures is outlined. The
general method of attack is indicated. There follows
a description of the several pieces of apparatus which

12 Bell System Technical Journal, January, 1929. Presented before So-
ciety of Motion Picture Engineers at Lake Placid, New York, September 24,
1928.

13 Bell System Technical Journal, January, 1929. Presented before So-
ciety of Motion Picture Engineers at Lake Placid, New York, September,
1928.

[79]

Bell Telephone Quarterly

comprise the theatre equipment, including a discussion
of some of their salient features and of the part each
plays in the sound projector system.

The Communication System of the Conowingo De-
velopment,^' by W. B. Beals and E. B. Tuttle. This
paper describes the communication system which has
been installed to serve the power plant at Conowingo,
Maryland, and its associated transmission line.

The important features to be considered in design-
ing a telephone system for a power plant are pointed
out. The types of telephone switchboard and telephone
instruments chosen in this case to meet the special re-
quirements of the generating station, together with the
layout and cabling arrangement, are outlined.

The paper also discusses the possible ways of pro-
viding for the needs of the load dispatcher and the plan
adopted at Conowingo; the facilities provided the pa-
trolmen for calling from points along the transmission
line ; the connection from the private branch exchange
to the general telephone system; and the special elec-
trical protection installed on the long lines leaving the
power house.

Re-flection and Refraction of Electrons hy a Crystal
of Nickel/' by C. J. Davisson and L. H. Germer. This
is a report of further observations on the regular re-
flection of electrons from the surface of a nickel crystal ;
an earlier report was published in the same journal."
In the present report data are given of the selectivity
of reflection for angles of incidence from to 10 to 50
degrees, and for electrons of wave-lengths 0.6 to 1.5
A. The previously found result is confirmed that to
explain the occurrence of the intensity maxima of the

14 Journal of the A. I. E. E., October, 1928, pp. 737-741.

15 Proceedings of the National Academy of Sciences, August, 1928, pp.
619-627.

16 Proceedings of the National Academy of Sciences, April, 1928, pp.
317-322.

[80]

Abstracts of Technical Papers

reflected beam it is necessary to assume that electron
waves are refracted on passing into the crystal. The
data are used for calculating indices of refraction for
nickel for electrons of various sjDeeds or wave-lengths,
and a dispersion curve is constructed. This curve dis-
plays a feature suggestive of the optical phenomenon
of anomalous dispersion.

Optical Experiments ivith Electrons," by L. H. Ger-
mer. A semi-popular account of a series of experi-
ments performed by C. J. Davisson and the author
upon the scattering of electrons by single crystals of
nickel. These experiments establish the fact that un-
der certain conditions moving electrons behave like
trains of waves. In the interaction of these waves with
a single crystal the optical phenomena of diffraction,
reflection and refraction have been observed. Scien-
tific accounts of these experiments are contained in the
following papers : Nature, 119, 558 (1927) ; Phys. Rev.,
30, 705 (1927) ; Proc. Nat. Acad. Sci., 14, 317 (1928) ;
Proc. Nat. Acad. Sci., 14, 619 (1928). Although the
present paper is of a popular nature it aims to be quite
comprehensive. It attempts to represent the status
of this series of experiments in August, 1928.

Buhher Compression Testing Machine ^^ by C. L.
Hippensteel. This paper gives a brief account of a
new compression test developed at the Bell Telephone
Laboratories for more reliably judging the ability of
rubber insulation on metallic conductors to withstand
certain service conditions to which it is subjected. A
recording compression testing machine, which has been
built for applying the test, and typical results are il-
lustrated. Other possible test uses for the machine are
suggested.

17 Journal of Chemical Education, Part I, September, 1928, pp. 1041-1055.
Part II, October, 1928, pp. 1255-1271,

18 India Kubber World, September, 1928, pp. 55-56.

[81]

Bell Telephone Quarterly

New Languages from Old— How Secrecy is Gained
hy the Inversion of Speech Sounds/^ by C. R. Keith.
The inversion of speech sounds may be accomplished
with the aid of methods used in radio broadcasting and
in carrier telephony. Among the possible applications,
it is illustrative of methods used to achieve secrecy in
electrical conmiunications.

The character of speech sounds is determined by the
frequencies and amplitudes of the component waves
into which the sound may be resolved. The process of
inversion consists effectively in altering the frequency
distribution of these components so that low tones ap-
pear as high tones, while high tones appear as low tones.
To the untrained observer, inverted speech is unintel-
ligible, although the characteristic cadence is preserved.
Inversion of the frequency scale is produced by mod-
ulating speech with a carrier wave which lies just above
the highest speech frequency which is to be transmitted,
and selecting the lower sideband. For practical rea-
sons connected with undesired distortion, it is more de-
sirable to break up the modulating jorocess into two dis-
tinct steps. The original speech sounds may then be
regained by repeating the process which led to its in-
version.

Joint Pole Use tuith Power Companies/^ by D. E.
Lowell. The relations between the telephone company
and the other wire using companies, especially the
power companies operating in the same area, are dis-
cussed in this paper. It recognizes the responsibility
of the telephone company as well as that of the power
company for good operating conditions in areas where
both types of line are involved and also points out the
necessity of close cooperation between Connecting and
Bell Telephone Companies. The considerations in-
volved in the joint use of poles by telephone and power

19 Scientific American, October, 1928, pp. 310-311.

20 Telephony, September 8, 1928, pp. 22-24. '

[82]

Abstracts of Technical Papers

companies are given with particular mention of the
general joint use agreement. The importance of mu-
tual advance notice of plans is developed. The reports
of the Joint General Committee of the N. E. L. A. and
Bell System form the background of the talk and are
recommended to those who have not already read them.

Adsorption of Gases hy Graphitic Carbon. II—
X-Ray Investigation of the Adsorbents /"^ by H. H.
Lowry and R. M. Bozorth. This paper is supplement-
ary to one by Lowry and Morgan appearing in the
Journal of Physical Chemistry in 1925 ^^ and gives
direct evidence that the adsorbents studied were gra-
phitic carbon. The X-ray data shows that carbon pre-
pared by the explosion of graphitic acid is graphitic
in structure and that the individual particles are flakes
averaging approximately 50 atom diameters in breadth
and 10 atom layers in thickness. The significance of
this finding is discussed in relation to current views of
the nature of active carbon adsorbents.

Recent Toll Cable Construction and its Problems,-''
by H. S. Percival. One of the outstanding develop-
ments in the Bell System has been the rapid extension
of toll cables. This has required the development of
new methods and apparatus. Material is carried into
rough right of way and installed through the use of
tractors, with equipjDed trucks and various types of
automotive equipment. The development of permalloy
now allows the complete loading of a full-sized cable
in two pots where six were required before. Crossings
over rivers are made in submarine cable or by long
span construction with catenary suspension. Cables
are tested before completion for sheath damage, de-
fective splices, etc., which might cause service failures,
by means of dry gas under pressure.

21 Journal of Physical Chemistry, October, 1928, pp. 1524-1527.

22 Journal of Physical Chemistry, Vol. 29 (1925), p. 1105.

23 Telephone Engineer, September, 1928, pp. 31-33.

[83]

Bell Telephone Quarterly

Quality Control hy Sampling;' by W. L. Robertson.
A discussion of the application of the mathematical
theory of sampling to commercial shop inspection.
Also gives tables illustrating numerically the results
obtained from the various sampling plans in use.

ProUems in Potuer Line Carrier Telephony and Re-
cent Developments to Meet Them;' by J. D. Sarros and
W. V. Wolfe. Power transmission lines as commonly
encountered present relatively complex networks hav-
ing irregular and unstable attenuation-frequency char-
acteristics within the 50-150 K.C. band employed for
power line carrier telephony. The high frequency
noise may be very high.

A single side band carrier suppressed system operat-
ing on a single frequency duplex basis has been devel-
oped to overcome these transmission difficulties.

A comparison of this system with other types shows
its superiority.

The initial installation of this equipment was made
on the 220 K.V. lines of the Pacific Gas and Electric
Company.

The Planning of Telephone Exchange Plants;" by
W. B. Stephenson. This paper discusses procedures
followed in planning future extensions to telephone ex-
change plants to care for increased demand for tele-
phone service. An outline is given of the methods
employed in forecasting future demand for telephone
service and in determining the most efficient design
of the plant to meet the service requirements. The
uses made of engineering comparisons in solving the
economic phases of various kinds of telephone engi-
neering problems are discussed, with particular refer-

24 Factory and Industrial Management, pp. 503-505, September, 1928;
pp. 724-726, October, 1928.

25 Journal of the A. I. E. E., October, 1928, pp. 727-731 (abridgment).

26 Journal of the A. I. E. E., July, 1928, pp. 500-503 (abridgment).

[84]

Abstracts of Technical Papers

ence to location and size or extent of major items of
plant as well as the time when they should be ready to
give service. Emphasis is placed upon the importance
of those factors less readily evaluated, such as service
factors, practicability from a construction and operat-
ing standpoint, flexibility, etc.

The Effect of the Acoustics of an Auditorium on the
Interpretation of Speech/' by E. C. Wente. Studies
of speech sounds in the Bell Telephone Laboratories
have shown that 60 per cent, of the acoustic energy in
speech lies below 500 c.p.s., although the intelligibility
of individual speech sounds is reduced by only 2 per
cent, if all the energy below this frequency is com-
pletely suppressed. These results indicate that the
sound absorption coefficient of materials placed in an
auditorium for reducing the reverberation time should
be high for tones of low frequency and low for those
of high frequency. Most porous materials commonly
used for this purpose have absorption characteristics
quite the reverse. Rooms that have been treated with
a rather large amount of such materials are therefore
often unsatisfactory for speaking purposes, although
the adjustment for reverberation time may have been
carried out according to accepted standards.

27 The American Architect, August 20, 1928, pp. 259-261.

[85]

Organization Changes

American Telephone and Telegraph Company
John H. Ray appointed General Solicitor.

Entered employ of the Bell System as Attorney,
.American Telephone and Telegraph Company, New
York City, February 15, 1923; General Attorney, De-
cember, 1923; General Solicitor, January 1, 1929.

New England Telephone and Telegraph Company
G. K. Manson appointed Chief Engineer.

Entered employ of the Bell System as Night Oper-
ator, New England Telephone and Telegraph Company,
Exeter, N. H., 1892; Workman, repair shop, Boston,
1895; Cableman at various points in New England,
1895; Special Inspector, 1896; Switchboard Man, 1899;
Electrical Engineer, 1901 ; Engineer, 1905 ; Chief Engi-
neer of Plant, 1910; Chief Engineer, Boston, 1913;
Chief Engineer, January 1, 1929.

Southern Area

H. E. Darling appointed General Manager, Southern
Area.

Entered employ of the Bell System as Assistant in
Traffic Engineering, American Telephone and Tele-
graph Company, Boston and New York City, 1906 ; En-
gineer, New York City, 1909; Acting Office Manager,
Operation and Engineering Department, August, 1922 ;
General Traffic Supervisor, New England Telephone
and Telegraph Company, Boston, August, 1923; Gen-
eral Traffic Manager, December, 1925; General Man-
ager, Southern Area, January 1, 1929.

[86]

Organization Changes

L. W. Layton appointed General Traffic Manager.

Entered employ of the Bell System as right-of-way
Agent, American Telephone and Telegraph Company,
New York City, February, 1905; Manager, Washing-
ton, D. C, December, 1905; Clerk, Columbus, O., Juty,
1907 ; Manager, Indianapolis, September, 1907 ; District
Traffic Chief, April, 1908; Service Inspector, Central
Union Telephone Company, Cleveland Telephone Com-
pany, Michigan State Telephone Company and Wis-
consin Telephone Company, Chicago, July, 1911 ; Gen-
eral Traffic Supervisor, January, 1912; Traffic Super-
visor, August, 1912; Traffic Supervisor, Chicago Tele-
phone Company, March, 1914; Toll Traffic Manager,
October, 1915 ; Division Traffic Supervisor, May, 1916 ;
Assistant Traffic Superintendent, July, 1918; Traffic
Superintendent, Cleveland Telephone Company, Cleve-
land, October, 1919; Division Traffic Superintendent,
Ohio Bell Telephone Company, January, 1921; Divi-
sion Traffic Superintendent, New England Telephone
and Telegraph Company, Boston, July 31, 1923; Gen-
eral Traffic Manager, Southern Area, January 1, 1929.

R. C. Harden appointed General Plant Manager,

Entered employ of the Bell System as Belief Oper-
ator, New England Telephone and Telegraph Company,
Claremont, N. H., 1894 ; Night Operator and Combina-
tion Man, 1895 ; Lineman, 1895 ; Canvasser and miscel-
laneous work. Northern Division, 1897; Chief Clerk,
Burlington, Vt., 1897; Lowell, Mass., 1900; District
Superintendent, Fitchburg, Mass., 1906 ; District Plant
Chief, Manchester, N. H., August, 1908; Division Su-
IDerintendent of Plant, June, 1917; Springfield, Mass.,
December, 1922; General Plant Supervisor, Boston,
March, 1926; General Plant Manager, Southern Area,
January 1, 1929.

[87]

Bell Telephone Quarterly

C. B. Allsopp appointed General Commercial Manager.

Entered employ of the Bell System as Clerk, Pa-
cific Telephone and Telegraph Company, San Fran-
cisco, April, 1909 ; Traffic Inspector, Oakland, August,
1909; San Francisco, May, 1910; District Traffic Chief,
Napa, July, 1910; Fresno, October, 1911; Traffic Chief,
July, 1912 ; resigned December, 1912 ; reengaged as Di-
vision Traffic Agent, San Francisco, April, 1913 ; Dis-
trict Traffic Chief, March, 1918 ; Acting Division Su-
perintendent of Traffic, August, 1918 ; Traffic Engineer,
October, 1919 ; Acting Division Superintendent of Traf-
fic, Portland, Ore., December, 1919; Di\dsion Super-
intendent of Traffic, May, 1920; Division Superinten-
dent of Traffic, New England Telephone and Telegraph
Company, Providence, P. I., August, 1923; Division
Commercial Superintendent, December, 1925 ; Division
Manager, February, 1926, Boston, May, 1927 ; General
Commercial Manager, Southern Area, January 1, 1929.

B. J. Bowen appointed Engineer.

Entered employ of the Bell System as Service In-
spector, New England Telephone and Telegraph Com-
pany, Boston, 1902; Division Traffic Engineer, 1903;
Equipment Engineer, 1905; Traffic Engineer, August,
1908; Assistant General Superintendent of Traffic,
September, 1913; General Superintendent of Traffic,
January, 1914 ; Staff Engineer, December, 1925 ; Engi-
neer, Southern Area, January, 1, 1929.

NOETHERN" AeEA

A. Schultz appointed General Manager.

Entered employ of the BeU System as Engineer's
Assistant, Bell Telephone Company of Pennsylvania,
Philadelphia, July, 1909; Specification Writer, Jan-
uary 1, 1911; Specification Clerk, January 11, 1911;
Harrisburg, February, 1911 ; Equipment Engineer, Oc-

[88]

Organization Changes

tober, 1911 ; Plant Engineer, August, 1913 ; Plant En-
gineer, Central District Telephone Company, Pitts-
burgh, March, 1918 ; Engineer of Equipment, Bell Tel-
ephone Company of Pennsylvania, Philadelphia, De-
cember, 1919; Engineer of Outside Plant, October,
1920 ; Division Superintendent of Installation, Western
Electric Company, March, 1923; New York City, De-
cember, 1923; General Plant Manager, New England
Telephone and Telegraph Company, Boston, December,
3925; General Manager, Northern Area, January 1,
1929.

J. E. Harrell appointed General Traffic Manager.

Entered employ of the Bell System as Clerk, Amer-
ican Telephone and Telegraph Company, Long Lines
Department, Atlanta, Ga., June, 1913 ; Apprentice, New
York City, August, 1913; Traffic Clerk, February,
1914; Atlanta, March, 1914; Assistant to Traffic Chief,
Louisville, Ky., October, 1915; Memphis, June, 1916;
Louisville, August, 1916; District Traffic Chief, Nash-
ville, November, 1916 ; Memphis, March, 1919 ; District
Traffic Superintendent, February, 1920; Detroit, May,
1922 ; Cleveland, May, 1924 ; New York City, November,
1924; General Toll Traffic Supervisor, New England
Telephone and Telegraph Company, Boston, October,
1925; Division Superintendent of Traffic, Springfield,
February, 1926 ; General Supervisor of Traffic, Boston,
April, 1927; General Traffic Manager, Northern Ai-ea,
January 1, 1929.

C. N. Tasker appointed General Plant Manager.

Entered employ of the Bell System as Inspector,
New England Telephone and Telegraph Company, Cen-
tral Division, October, 1900; Service Inspector, New
Bedford, 1902; Division Inspector, Southern Massa-
chusetts, 1903; Foreman of Maintenance, New Bed-
ford, 1906; Division Inspector, Southern Massachu-

[89]

Bell Telephone Quarterly

setts, 1906; District Foreman, New Bedford, 1906;
Foreman, 1907 ; District Foreman, 1908 ; District Plant
Chief, October, 1908; Acting Division Superintendent
of Plant, Portland, Me., January, 1918; Division Su-
perintendent of Plant, Springfield, October, 1918; Gen-
eral Superintendent of Plant, Boston, December, 1922 ;
General Plant Manager, August, 1923 ; Division Super-
intendent of Plant, December, 1925; Providence,
March, 1926 ; General Plant Manager, Northern Area,
January 1, 1929.

B. T. Miller appointed General Commercial Manager.

Entered employ of the Bell System as Student, Col-
orado Telephone Company, Denver, October, 1910 ; Stu-
dent and Manager, May, 1911; Assistant Manager,
July, 1911 ; Assistant Manager, Mountain States Tele-
phone and Telegraph Company, January, 1912; Man-
ager, July, 1912 ; Traveling Service Observer, Salt Lake
City, May, 1914; District Traffic Chief, Boise, Ida.,
June, 1915; Pocatello, Ida., March, 1915; Division
Traffic Supervisor, Salt Lake City, November, 1917;
City Traffic Manager, February, 1918 ; District Traffic
Chief, April, 1919; Denver Traffic Manager, Denver,
October, 1919; District Traffic Chief, April, 1920; Den-
ver Traffic Chief, May, 1921; Denver Traffic Superin-
tendent, May, 1923; Acting Division Superintendent,
New England Telephone and Telegraph Company,
Worcester, December, 1923; Division Superintendent
of Traffic, Springfield, September, 1924; General Su-
pervisor of Traffic, Boston, February, 1926; Division
Manager, Providence, May, 1927; General Commercial
Manager, Northern Area, January 1, 1929.

F. A. Benham appointed Engineer.

Entered employ of the Bell System as Plant Engi-
neering Assistant, New England Telephone & Tele-

[90]

Organization Changes

graph Company, Boston, July, 1906 ; Engineer, Novem-
ber, 1913; Engineer, Northern Area, January 1, 1929.

Southwestern Bell Telephone Company
A, C. Stannard appointed Vice-President.

Entered employ of the Bell System as Night Op-
erator, American Telephone and Telegraph Company,
Springfield, Mass., 1899; Chief Operator and Service
Inspector, New England Telephone and Telegraph
Company, White River, Springfield and Boston, 1901 ;
Traffic Department, Southern Bell Telephone Com-
pany, Atlanta, Ga., 1903; Traffic and Tariff Depart-
ment, American Bell Telephone Company, Boston,
Mass., 1906; Traffic Engineer, Pacific Telephone and
Telegraph Company, San Francisco, Cal., January,
1908; Division Superintendent of Traffic, January,
1914 ; Acting General Superintendent of Traffic, Ches-
apeake & Potomac Telephone Company, Baltimore,
Md., August, 1918 ; General Superintendent of Traffic,
May, 1919 ; General Traffic Manager, Southwestern Bell
Telephone Company, St. Louis, Mo., January, 1921;
Vice-President, September, 1928.

F. M. Hoag appointed Vice-President.

Entered employ of the Bell System as Cable Helper,
Cleveland Telephone Company, Cleveland, O., 1898 ;
Splicer, 1899; Foreman, 1900; General Foreman of
Construction, 1902; Inspector, Engineering Depart-
ment, Southwestern Telephone and Telegraph Com-
pany, Dallas, Tex., 1903 ; Construction Engineer, 1905 ;
Assistant Plant Engineer, October, 1909 ; Construction
Supervisor, January, 1912 ; Division Superintendent of
Plant, July, 1913 ; Division Plant Superintendent, De-
cember, 1915; and at San Antonio, May, 1917; Plant
Supervisor, Dallas, June, 1919; General Plant Super-
intendent and State Engineer, Southwestern Bell Tel-
ephone Company, Oklahoma City, Okla., May, 1920;

[91]

Bell Telephone Quarterly

title changed to Plant Superintendent, September,
1920; State Engineer and Assistant General Manager,
October, 1920; General Manager, Dallas, Tex., April,
1921 ; General Commercial Manager, St. Louis, Septem-
ber, 1926; Vice-President, September, 1928.

W. L. Holley appointed General Traffic Manager.

Entered employ of the Bell System as Traffic Stu-
dent, Pacific Telephone and Telegraph Company, Los
Angeles, August, 1910; District Traffic Chief, Santa
Barbara, January, 1912; Traffic Chief, Los Angeles,
April, 1913 ; Traffic Supervisor, Chesapeake & Potomac
Telephone Company, Baltimore, Md., December, 1918;
Acting Division Traffic Superintendent, July, 1919;
Division Traffic Superintendent, October, 1919; Gen-
eral Supervisor of Traffic, Southwestern Bell Tele-
phone Company, St. Louis, April, 1921 ; Traffic Super-
intendent, December, 1923 ; General Supervisor of Traf-
fic, August, 1925; Engineer, American Telephone and
Telegraph Company, New York City, May, 1927 ; Gen-
eral Traffic Manager, Southwestern Bell Telephone
Company, St. Louis, October, 1928.

New Jersey Bell Telephone Company

A. P. Monroe appointed General Traffic Manager.

Entered employ of the Bell System as Inspector,
Bell Telephone Company of Pennsylvania, Philadel-
phia, October, 1911; Traffic Inspector, March, 1912;
Assistant Traffic Supervisor, August, 1913; at Allen-
town, July, 1915 ; Traffic Supervisor, Philadelphia and
Camden, N. J., August, 1915 ; District Traffic Superin-
tendent, September, 1915; on furlough for military
service, September, 1917 to August, 1919; District
Traffic Manager, New York Telephone Company, New
York City, February, 1920; Supervisor of machine
switching, February, 1925; Service Superintendent,
April, 1926; Division Superintendent of Traffic, May,

[92]

Organization Changes

1927; General Supervisor of Traffic, November, 1927;
General Traffic Supervisor, May, 1928 ; General Traffic
Manager, New Jersey Bell Telephone Company, New-
ark, N. J., October, 1928.

Pacific Telephone and Telegraph Company

Frank J. Reagan appointed Vice-President in charge
of Publicity and Personnel.

Entered employ of the Bell System as Traffic In-
spector, New England Telephone Company, Boston,
August, 1909; Traffic Department Clerk, Pacific Tele-
phone and Telegraph Company, San Francisco, Feb-
ruary, 1910 ; Supervisor of Traffic Inspection, Septem-
ber, 1911; Traffic Supervisor, May, 1913; General
Supervisor of Traffic, February, 1920 ; Division Super-
intendent of Traffic, February, 1922; General Traffic
Manager, New York Telephone Company, Albany,
July, 1925; General Commercial Manager, for North-
ern California and Nevada, Pacific Telephone and Tel-
egraph Company, San Francisco, June, 1926; Assist-
ant to the President, in charge of Publicity, August,
1928; Vice-President in charge of Publicity and Per-
sonnel, January 1, 1929.

J. H. Corcoran appointed General Manager, Northern
California and Nevada Area.

Entered employ of the Bell System as Messenger,
Pacific Telephone and Telegraph Company, San Fran-
cisco, 1887 ; Operator, Sunset Telephone and Telegraph
Company, 1887; Repairer and Inspector, Pacific Tel-
ephone and Telegraph Company, 1887 ; Installer, 1889 ;
Wire Chief, 1892; Wire Chief, Sunset Telephone and
Telegraph Company, Los Angeles, 1895; Exchange
Manager, Santa Barbara, 1897; Exchange Manager,
Pacific Telephone and Telegraph Company, 1899; Ex-
change Manager, Sunset Telephone and Telegraph
Company, San Jose, 1900; Division Manager, Central

[93]

Bell Telephone Quarterly

Union Telephone Company, Indiana, 1902 ; Sunset Tel-
ephone and Telegraph Company, Seattle, 1903 ; Pacific
Telephone and Telegraph Company, Seattle, 1907; Di-
vision Superintendent of Traffic, San Francisco, Au-
gust, 1908 ; Portland, Ore., January, 1914 ; Acting Gen-
eral Superintendent of Traffic, San Francisco, Decem-
ber, 1919; General Superintendent of Traffic, Decem-
ber, 1920; General Traffic Manager, January, 1926;
General Manager, Northern California and Nevada
Area, October, 1928.

M, R. Sullivan appointed General Traffic Manager,
Northern California and Nevada Area.

Entered employ of the Bell Sj^stem as Clerk, Pacific
Telephone and Telegraph Company, San Francisco,
March, 1912; Traffic Inspector, August, 1913; Chief
Clerk, March, 1917; Division Traffic Agent, August,
1918 ; Division Traffic Supervisor, January, 1919 ; Traf-
fic Supervisor, May, 1921 ; General Supervisor of Traf-
fic, February, 1922; General Toll Supervisor, July,
1925; General Traffic Supervisor, January, 1927; Gen-
eral Traffic Manager, Northern California and Nevada
Area, November, 1928.

[94]

Bell Telephone Quarterly

A MEDIUM OF SUGGESTION
AND A RECORD OF PROGRESS

Published quarterly for the Bell System by the American Telephone
and Telegraph Company

Subtcriptioiif $1.50 per year, in United States and Canada; single copies, 50 cents

Address all communications to

INFORMATION DEPARTMENT
AMERICAN TELEPHONE AND TELEGRAPH COMPANY

195 Broadway, New York

Vol. VIII APRIL, 1929 No. 2

The Dial Office ^^Cutover

!»9

SINCE the advent of dial service in the Bell Sys-
tem, a new word is coming more and more into
use. It is " Cutover." Its use is not confined to
telephone workers. Telephone users, whose service has
been changed from manual to dial, have encoimtered the
word and have used it. More than 3,100,000, or 21.7
percent of the Bell owned stations, were served by cen-
tral office equipment of the dial type at the end of 1928,
and for more than 2,000,000 of these there was a trans-
fer from manual to dial service. A great many people
by this time know the word * ' Cutover ' ' and the change
in service associated with it.

What is a '' Cutover " ? In instances wiiere the
Bell System has acquired a dial plant with a numbering
plan inadequate for the entire service in the citj^, the
cutover has involved an expansion of the numbering
plan so as to comprehend service to all the telephones
in the city, the introduction of an additional train of
switches in a working plant, and an increase in the num-
ber of pulls of the dial necessary to call a number. In
general, however, a cutover involves the transfer of part
or all of the subscribers in a given manual office to a

[95]
7

Bell Telephone Quarterly

new dial office. The dial equipment may be in the same
building with the manual, or it may be in a new build-
ing a block or even a mile away.

To the layman, perhaps the most impressive type
of cutover is the one that involves a transfer of the serv-
ice from one building to another. It is mystifying to
understand how the thousands of lines involved may
be working in a manual office until nearly midnight on
the day of the cut and at midnight they are all working
in the new office with each line in its proper place.
*' How long does it take?" "How is it done?"
** Are the lines cut off from service altogether?"
" Isn't it very dramatic? " These are some of the
questions that are asked.

Does a cutover have any drama? For the casual
observer, no. It is not physically possible to watch all
the steps involved in making a given cut. The time
intervals between steps are too short to allow one to
travel from point to point. Even actual observation
of each step would not be sufficient, for it would be nec-
essary for the mind to build up a picture of what each
step signified.

But to the men and women engaged in the work,
there is all the thrill that a First Night at the theatre
has for the cast — and more. Actors rehearse for a
few weeks, but the telephone operating forces have been
in training for months, and work on the job has been in
progress for a year or two. If actors fail to provide
entertainment, they seek another vehicle for their ef-
forts. But the principals in a telephone cutover can-
not fail, and their audience— the telephone users— is the
most critical in the the world. Their mistakes would
disturb a service that is essential to the conmiunity.
They have been rehearsed in each step in the cutover
program. They have their cues. They all know that
the success of the job requires that each one perform
his or her allotted task at the assigned time. Pride of

[96]

The Dial Office '' Cutover "

craft requires that each one will not be found wanting.
Indeed there is drama— plenty of it.

Preparatory Work

Suppose we consider some of the major steps lead-
ing up to the cut, and then, eliminating time and dis-
tance, attend all points of interest. For example, an
old manual equipment in an old building is to be re-
placed with dial equipment in a new building some
blocks from the old one. A sufficient amount of equip-
ment is engineered and ordered to care for the growth
in that area for two years from the date when the new
office goes into service. The new building is started
and both telephone people and customers, located in
that area, are interested in watching it grow. The
operations are so timed that by the time the building is
fiiiished, the equipment is delivered and the installers
are at work.

While this work is in progress, the Plant forces are
busy building the underground conduit and installing
cables so that the subscribers' lines and the inter-office
trunks may be connected to the new office. In due time
each subscriber's line served by the old office is spliced
to a cable pair leading to the new office. This is all
done before the cutover takes place. StejDS are taken
to be sure that each line is in its proper place in the
new office before it is cut from the old.

While these steps are in progress, many others are
under way, all of them being timed so that they are
completed at the proper date with reference to the cut-
over. The various private branch exchange boards
must be replaced with new boards that will work prop-
erly with the new dial equipment. Along with these
changes, it is frequently necessary to change the night
service arrangements required by the subscriber, these
changes involving both equipment and directory list-
ings.

[97]

Bell Telephone Quarterly

The Plant forces must replace all the manual in-
struments in the area with dial instruments, and must
assure themselves that it is possible to dial satisfactorily
from each instrmnent over the subscriber's primary
loop to the central office. If a given line is found to
be unsatisfactory, the condition must be corrected.
Nothing is left to chance. By the time the cutover oc-
curs, there must be assurance that each telephone is
connected to the assigned terminal in the office, and
that it is possible to dial from that telephone over the
subscriber's line into dial equipment that will work in
accordance with design.

Several months before the new office is cut into serv-
ice, the traffic engineers must complete the work of as-
signing each line to the proper terminals in the new
office so that adequate provision is made for the normal
calls from and to each subscriber. This involves a
study of the requirements for each class of subscribers
as well as individual assignments for each subscriber.
This work involves many number changes but no un-
necessary ones are made. Where nmnbpr changes are
necessary, steps are taken to make them so as to cause
the minimum inconvenience to the subscribers affected.

The Plant men w^ho must cut over the new office and
maintain it receive their training for several months
preceding the cut. As the new dial office requires op-
erators to handle toll calls to nearby towns, to assist
customers who have had difficulty, and to handle calls
for numbers that have been changed or discontinued,
it is necessary to train some of the manual operators
in the duties they will have to perform when the new
equipment is cut into service. This work is in progress
for several weeks preceding the cutover.

Of course the change from manual to dial service
makes it necessary for the customer to understand the
new method of placing his call and the day, hour, and
minute when this change becomes effective. This work
of public instruction is carefully ]3lanned and executed.

[98]

The Biol Office " Cutover "

In a good many cases it involves a visit to the premises
of each subscriber and a thorough explanation of the
method of dialing. The work is not considered com-
plete until the subscriber has actually dialed some prac-
tice calls under the supervision of a telephone repre-
sentative.

Shortly before the cutover takes place, the Plant
forces conduct a series of tests from the multiple in the
old office to the terminals in the new office to make sure
that each subscriber is actually connected to the ter-
minal in the new office to which he has been assigned.

The above paragraphs do not cover all the steps in-
volved in a specific cutover but perhaps they will give
an idea of the many important activities under way
and the thought that is given to the responsibility of
co-ordinating all of them so as to complete them neither
too early nor too late.

Transfer of Trunks

As the day of the cutover arrives, there is an under-
current of tenseness that cannot be wholly concealed
by the smiles with which the men and women on the
job greet the visitor. A visit to the old manual office is
interesting. The operators are busy, but they seem to
handle the old equipment tenderly. Some of them are
tearful. Subscribers have called up to say good-bye,
to apologize for cross words, and to express thanks for
good service. A supervisor smiles a greeting with glis-
tening eyes. The chief operator tells what the service
index is for the month to date, and it is evident that
she did not let the service slmnp even though her force
was to be scattered. She tells of the good-bye party
that was held the evening before and admits that most
of the operators cried over the breaking up of old as-
sociations. All welcome the new but there is a little
pang at parting from the old.

Over in the new office there are some cutover activi-
ties under way on Saturday afternoon. The inter-

[99]

Bell Telephone Quarterly

office trunk plant is gradually being transferred from
the old office to the new as the traffic lightens. On pre-
vious Saturdays, records were taken of the way the
traffic declines on a Saturday afternoon and evening,
and estimates have been made of the number of trucks
in each group that may be released each half hour, be-
ginning about twelve noon. The Traffic and Plant
men have agreed not only as to the number of trunks
in each group that may be released at each interval but
have selected the specific trunks. These trunks are
listed. Traffic men in each office arrange to put them
out of service a few minutes before they are scheduled
to be cut. These operations are co-ordinated by a Traf-
fic Dispatcher at a Private Branch Exchange section
located alongside another one which is used by the Plant
Dispatcher. When the Traffic Dispatcher has received
an O.K. from each office on the trunks to be released
at a given time, he clears with the Plant Dispatcher
who gives the Plant men at each office orders to proceed
with the scheduled operations. This process goes on all
afternoon and evening up to eleven o'clock, by which
time about ninety percent of the trunks have been cut
to the new office without creating any trunk shortage
in the old office.

The casual visitor would be little interested in this
work. There is nothing spectacular about it. A word
or two from the Dispatchers to each office is sufficient.
And yet real happiness shows in the faces of the men
who have planned and executed this work when they
have completed the transfer of an ample supply of
trunks to the new office without holding up a single call
to or from the old office because of a trunk shortage.
For them the day is full of drama. Loss of sleep and
even serious illness are not sufficient to keep them from
executing the plans that they have set up. Pride of
craft is indeed strong among telephone men and women.

[100]

The Dial Office " Cutover

The Cutover

The first cutover in a given city is usually scheduled
for midnight on a Saturday. The traffic is light at that
hour. There is little use of business telephones on
Sunday, thus widening the margin for curiosity calls
from residence customers. The Plant and the Traffic
forces need Sunday to be sure that everything is run-
ning smoothly and is in readiness for a heavy load on
Monday. Then too there is little possibility that some
telephone users will confuse midnight with some other
hour.

As the hour of the cut draws near, there is evidence
of something unusual at both the old and the new build-
ings. Many cars are parked before both buildings.
Lights shine through all the windows. A visit to the
old operating room shows the usual night force at the
board for handling the usual light Saturday night
traffic. But one notices that every operator is dressed
in her '' Sunday best." Most of them never had any
experience with a cutover and they are not sure about
the attendant ceremonies, but, whatever happens, they
wanted to be dressed for it. They are a little excited,
and when at eleven fifty, they get word to start a sched-
uled step in the cut, their voices tremble as they cut in
on each talking connection and advise the customers
that '' We are about to cut over the new dial office."
The same information is given on new calls. If an
emergency call is encountered, steps have been taken
to handle it at the new office if it is interrupted by the
cut.

At the main frame downstairs, men are stationed
at close intervals. Cords run behind the heat coils. At
a word over the telephone from the Dispatcher, the man
in charge signals his lieutenants who in turn pass the
word to the men to '' Pull. Take it easy." As each
man takes hold of the cord at the bottom of the bay
and pulls, a barrage of heat coils comes flying from the

[ 101 ]

Bell Telephone Quarterly

frame. Goggles or a visor protect the eyes of each
man.

Of all the cutover operations, this one is perhaps
the most spectacular to the casual visitor. It is of even
greater interest to the men. In all the years that they
have worked in that office, their problem has been to
maintain service, but with a rip they have torn out all
the heat coils and there are no subscribers connected
with that office. When telephone men do a job so for-
eign to their regular work of maintaining the service, it
bespeaks their confidence in the soundness of the plans
that have been set up. The operation is over in thirty
seconds. The man in charge reports completion to
the Dispatcher.

This particular cut involves the severing of certain
cables in the cable vault at the old building. The quar-
ters there are crowded but the men who are to do the
cutting are lined up outside, each man equipped with
a small ax. In a few moments they will be required to
perform an unusual task. Their job has been to in-
stall and to maintain those cables. In a moment they
will take an ax to them. On signal they file into the
vault and take positions to which they have been as-
signed. The name of each man appears at his post.
The cables he is to cut have already had the sheathing
removed, and all is in readiness. The man in charge re-
ceives the order from the Dispatcher, and quietly orders
the men to cut. Quickly the job is done. The cable
ends are fanned out so that short circuits will not be
created by this operation. In a few seconds a comple-
tion report is passed to the Dispatcher.

At the new office, it is necessary to show credentials
in order to enter. There are signs of activity on every
floor. A trip to the basement is worth while, to inspect
the new power plant and the long, straight runs of
cable in the new cable vault. The contrasts with con-
ditions in the old office are as marked here as in other
parts of the building.

[ 102 ]

The Dial Office " Ctitover

And now let us visit the new operating room a little
before midnight. The small switchboard seems inade-
quate to an observer fresh from an inspection of the old
one. The flowers on the Chief Operator's desk and the
many visitors are evidence that something is about to
happen. At a few minutes before twelve the operators
file in and take their places at the board. Like those
in the old office, they have dressed especially for the
occasion. They, too, are somewhat tense. They have
had weeks of training for their new duties. In a few
minutes the curtain will rise on a new performance.
Each operator wonders what type of call she will first
encounter and each wants to be sure that she does the
right thing on that call. Though their tenseness may
be unobserved and their emotions may be unknown to
the casual observer, telephone people understand. In
a few minutes some lamps at the board will light.
Hands may tremble a little— it will be like a *' first
night." But the confidence will come at once. The
operators will be ready. They always are.

At the line finder frames in the new Switch Room,
small insulating wedges were inserted in the cut-off re-
lays a few days before the cutover, so that the equip-
ment in the new office would not be affected by any calls
that the subscriber might originate so long as the old
office was in service. Each of these small wedges has
a hole in it, and groups of them are strung together. A
few minutes before midnight, a group of men file in and
take their places before these frames. The man in
charge is at the telephone. His lieutenants stand at
the end of each row of frames where they can see him
and also see their men. At the scheduled time, the sig-
nal from the Dispatcher is relayed to the men at each
frame. They quietly pull the cords, removing the
wedges. Midnight strikes. The new office is in serv-
ice, and the switches begin to move as telephone users
dial their calls. An office has been cut over.

As a part of the over-all picture of every cutover

[103]

Bell Telephone Quarterly

there are, for those who look for them, little close-ups
that give a human touch to what may seem to the casual
observer merely a matter of routine. A certain cut-
over, for example, involved the advance delivery of a
new directory, accompanied by a request that the old
directory be used until midnight of the day of the cut-
ting in of the new equipment, and that the new one be
used thereafter. The subscribers had been asked to
destroy the old directory and the transmitter card as
soon as possible after midnight. One of them dialed
" Operator " a minute after midnight to make the fol-
lowing report of his share in the success of the cutover :
" I burn up my old directory. I tear up the card on
my telephone. I use my new directory. I done every-
thing you told me to. All right to go to bed now? "

Gratefully, he is assured that his part of the job
is done. Gratefully, because such calls are evidence of
a desire on the part of the public to co-operate with the
telephone people in making service go smoothly. Such
calls are by no means exceptional. One or more cases
of this sort are encountered in almost every directory
cut.

The Center of Cutover Activities

Let us enter the new terminal room on the night of
a cutover. Near the Dispatcher's desk is a knot of
men, talking quietly to each other. They are the men
who have been intimately concerned with planning for
the cutover and in the preliminary preparations for
what is about to take place. Curiously proud of their
part of the job, they are— yet curiously generous in
sharing credit with others. The Plant men give us de-
tailed figures that tell of the fine condition of the equip-
ment— and then modestly attribute this to the good
work done by the Western Electric Company installers.
The Installation foreman tells his story of the job of
getting this enormous amount of apparatus in place—
but gives credit for his good record to the fine condition

[ 104 ]

The Dial Office '' Cutover ''

of the equipment received from the factory. And so
it goes, each man with a wholesome pride in his own
work, but a pride that sees his work in its true propor-
tions and as related to the work of others. All are
right. As we talk with them, we begin to see this job,
not as just a Division job or a Company job, but as a
System job.

We wander over to the Dispatcher's desk. A lamp
lights. He plugs in, speaks a word or two, and dis-
connects. He notes something on a sheet, plugs into
another line, speaks a word or two, and disconnects,
again with an entry on his sheet of paper. Many times
this is repeated— until the observer begins to think of
it as merely humdrum routine. Surely there is nothing
dramatic in this plugging into jacks and scratching of
notes on a form report.

And yet to the Dispatcher and his men about him
who have been planning the job, there is in all this
something extremely fascinating. These men know
every step of the program. They know what work
must be done at each point, how it must be done, who
will do it, and when. They visualize the job, as a whole,
from its beginning up to its completion, as an architect
watches, from foundation to roof, the growth of a build-
ing that he has helped to create. Step by step they
have done this thing that is about to be finished. They,
too, are builders.

The Old Passes

There is drama even in an empty stage, after the
curtain has fallen. In the old building, the battery has
been cut off the board, the lights have been extinguished,
the doors locked. The man who installed that board,
twenty-five years ago, was there tonight. Many of the
men have worked on that equipment for years. Per-
haps they realize that they, too, have been aging with
the equipment. Perhaps it is because even machines,
when one is long associated with them, assume some-

[105]

Bell Telephone Quarterly

thing very like a personality. Any one of a dozen ex-
planations will do for the fact that, as they leave the
building on this particular night, they joke a little more
noisily than usual. There is something a bit like bra-
vado in their cheery '' Good-night." But if you were
to look at some of them closely, you would see that their
eyes were glistening.

Perhaps there is drama in the new building, too. It
has been emptied of visitors. Only the telephone peo-
ple who have been assigned to night duty remain. The
building is dark except where there is work to be done.

The casual visitor may have left with the feeling
that there was not much of a show, and if he could re-
turn and see these people going quietly about their work,
he would doubtless think that this scene was still more
lacking in the spectacular. Yet, for those who have
finished their part of the job, and for these who remain
to carry on through the night, there is not a little of
romance in this routine thing called a cut over.

They have had a part in a job that has been well
done, so far. They will be back Sunday and Monday
to be sure that the new office meets the test of a com-
mercial load. They have done a job that measures up
to the standards of the System and to their own exact-
ing standards. They will see this job carried on, and
neither personal affairs nor lack of sleep, nor bodily
weariness, nor even ill health can stop them. You can
not make such people, engaged in such a work, believe
that their job is a humdrum one.

But unless you can see their job through their eyes,
there is nothing di'amatic about a cutover.

A. E. Van Hagan.

[106]

Seven Billion Toll Rates

IN the early eighties when the telephone was begin-
ning to reach out and to cover territory neighbor-
ing Boston, figuring long distance toll rates was
hardly more than a matter of pad and pencil and the
cost next to nothing. Assimiing 40 or 50 towns receiv-
ing toll service, there might have been, all told, 2,000
rates involved. A little measuring on a map, a few
computations, and presto ! a new set of tariffs.

Today, however, there are over 88,000 points on the
lines of the Bell System and its connecting companies
in North America and in order that each of these points
may have the necessary long distance rates to each of
the other 87,999 points involves setting up a total of
over 7,700,000,000 station-to-station day rates, from
which are derived an additional 31,000,000,000 rates for
other classes of service.

If these 7,700,000,000 station-to-station day rates,
now necessary for our business, were to be determined
by the old method, the total cost would amount to sev-
eral million dollars and the time required with, say a
1,000 clerks on the job, would be several years.

An example of modern preparation and issuing of
rates was given in connection with the change in toll
rates made effective February 1, 1929. This change
affected many of the toll rates of all the 88,000 points
in the Bell System. Work on the new rates was started
about October 15, 1928, and the rates were completed
and in the hands of the operators ready for use Feb-
ruary 1, 1929, the total time required being about SJ
months. There were over the country possibly 500
people on the assignment, only a portion of whom
worked the entire 3J months and the total cost was
probably not over $200,000. This was made possible
principally through the use of a group or block system
in computing and setting up the new rates.

[107]

Bell Telephone Quarterly

[108]

Seven Billion Toll Rates

The block system used by the Bell System and Con-
necting Companies has been laid out to include the en-
tire continent. The blocks, seven miles square, and the
sections (a group of 25 blocks), 35 miles square, have
been plotted on maps obtained from the United States
Government at Washington, the Canadian Government
at Ottawa, and the Mexican Government at Mexico
City. A suitable nmubering scheme is used to desig-
nate each block and section of the system and for rate
purposes, each city is assigned the block and section
number of the particular block and section in which
it is located.

Toll rates under this system are determined by three
methods. Up to 40 miles rates are based on the direct
air line distance between the points as measured on
the government maps. Between 40 and approximately
350 miles rates are based on the computed air line dis-
tance between the centers of the seven-mile blocks and
all points in a block take the same block rates. Fi-
nally, for distances greater than 350 miles the rates
are based on the air line distance between the centers
of the 35-mile sections and all points in a section take
the same section rates. As the blocks and the sections
used are the same size throughout the continent, the
same rates for equal distances are always obtained un-
der a given rate schedule. Therefore, under a given
rate schedule the charts can be printed in quantities
from a single set up of type and used anywhere, it being
necessary only to give them the proper block and sec-
tion designations to make them applicable to a partic-
ular locality.

The toll tariffs as set up for use of the operators,
the accounting departments and conunercial offices,
contain in each case a List of Stations, a First Refer-
ence List, Block Rate Charts, Section Rate Charts and
a Table of Rates. The First Reference List shows the
names and station-to-station day rates to all points
within 40 miles where the direct air line rate applies

[109]

Bell Telephone Quarterly

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[110

Seven Billion Toll Rates

FIRST REFERENCE LIST
TOLL RATES

FROM ?.lW.»feur«h

TO

TO

La Qranga

Lake Foreot

Lake Villa

Lako Zurtcb

Lansing

Lemont

Libertyvill«

Lockport

Lombard

Lyons

10
1.25
1.40
25
20
15
30
20
15
.10

20
1.55
1.75
35
30
25

40

30
25
20

10
30
35
10
10
10
10
10
10
10

Palat ins

Palos Park

Park Rld^o

Peoria

Pistakea

Piano

PlattTlllo

20
15
10

1.80
35

1.35
35

30
25
20

2.25
50

1.70
50

10
10
10

45

10
35
10

and also the names and station-to-station day rates to
all points to which there is any appreciable volume of
traffic, {a) The List of Stations shows the names of
each of the 88,000 points reached over the Bell System
and with each name the number of the block and section
in which the point is located. (&) The Block Charts
show the station-to-station day rates for points from 40
to 350 miles distant and the Section Charts the station-
to-station day rates for points more than 350 miles dis-
tant. The Table of Rates contains the corresponding
rates for classes of service other than station-to-station,
for each station-to-station day rate from 10 cents to
20 dollars.

With this material set up for a particular point,
the rate may be determined from that point to any one
of the other 87,999 points in the List of Stations. For
example: Assume that a Pittsburgh operator desires
the station-to-station day rate from Pittsburgh, Pa.,
located in Section T73, Block q, written T73-q, to
Bangor, Ala. She will not find Bangor with its rate in
her First Reference List as the distance is more than
40 miles and there is no appreciable volume of traffic.
She will, therefore, obtain the number of the block in
which Bangor is located, HH64-W, from her List of
Stations and after first finding that this block is not
shown on her block rate charts, the distance being more

[111]

Bell Telephone Quarterly

BLOCK RATES FROM

73

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80

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10

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10

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25

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30

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35

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45

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70

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80

(

u

10

V

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w

19

X

15

Y

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?5

V

30

w

10

X

45

Y

50

u

50

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w

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65

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70

u

70

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75

w

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I

U

A

15

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20

E

25

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30

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35

c
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45

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50

A

55

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55

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60

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65

E

70

A

70

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75

c
80

J

F

20

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20

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20

25

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25

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30

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35

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40

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50

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55

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60

H

60

1
65

70

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75

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75

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80

(

K

25

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25

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25

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30

o

30

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35

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40

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45

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50

o

50

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55

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60

M

65

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65

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75

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75

M

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1'

p
30

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30

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30

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35

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45

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40

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45

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Portion of Block Chart. Arr(»w Indicates Rate From Block T73-q to Block

V75-g.

than 350 miles, will, by reference to the grid of her
section rate chart, locate the section HH64. In this
section she will find printed in red ink the rate $2.35.
Rate charts show only the initial period rates for sta-
tion-to-station day service and reference is made to
the Table of Rates to determine the corresponding
rate for other classes of service and for overtime after
first determining the station-to-station initial rate as
described.

[112]

Seven Billion Toll Rates

[113]

Bell Telephone Quarterly

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[114]

Long Toll Cable Construction and
Maintenance

ONE of the most important considerations con-
fronting the Long Lines Department of the
American Telephone and Telegraph Company
is the construction and maintenance of long toll cables.
During 1928 there was added about 1,500 miles of cable
to the network stretching across the northeastern sec-
tion of the country. It is possible to talk through cable
from north of Portland, Me., all the way to Greensboro,
N. C, in the South, to Davenport, la., and St. Louis
in the West, and to all important centers in the inter-
vening territory. Construction plans for the next few
years contemplate further extension of this system to
the north, west, and south, and reinforcement of the
existing network.

The important factors in selecting a toll cable route
are avoidance of circuitous routes, freedom from power
exposui'es and fire hazards, suitability of repeater sta-
tion locations and feasibility of right-of-way from the
standpoint of its cost together with the attendant con-
struction and maintenance problems. In general, long
toll cables are run on direct routes between large cities
principally on private right-of-way and often through
rather rough coimtry. Some companies secure all new
right-of-way on a form of grant in which the property
owner agrees to construct no inflammable structure
within fifty feet of the cable line. It is impracticable
to secure such protection if the cable line is on a high-
way. Furthermore, highways also introduce existing
fire hazard difficulties, and often involve later rear-
rangements due to highway changes. The tendency
therefore is towards either all underground routes or
private right-of-way aerial routes with undergroimd
through cities.

[115]

Bell Telephone Quarterly

Preliminary Work

Scheduling and programming cable construction
work are important because of the length of time re-
quired to plan and construct a long toll cable. Right-
of-way permits and franchises should be obtained well
in advance in order to avoid delays or changes in plans
after material has been ordered or loading spacing laid
out. The locating and staking work should be done
under the supervision of engineers having in mind the
problems of the Construction Department. It is also
important to complete negotiations for railroad, river
and power crossings well in advance of the construction
work.

Pole Line Messenger and Conduit Work

Since aerial toll cables are usually placed on new
pole lines free of open wire construction, the building of
a cable pole line is an undertaking which can be handled
on a large scale production basis. Digging machines,
tractors and air compressors may be used to advantage.
Messenger and ring work follows the pole line construc-
tion and requires no special discussion. Conduit work
is usually handled by contract although close super-
vision is required. In this connection duct assignments
are an important engineering consideration in that
they involve future maintenance of underground cable.
Improper duct assignments lead to no end of difficul-
ties, particularly in cities where there are large require-
ments for local distribution. It is important that the
toll cables be placed and racked where they will be least
disturbed.

Cable Placing

Pulling cable in underground systems is well stand-
ardized. The placing of aerial cable, however, still
partakes of many problems incident to the wide varia-
tion in local conditons surrounding its erection. In
general, there are two methods, one in which cable reels

[116]

Long Toll Cable Construction and Maintenance

are spotted by a separate gang ahead of the cable pull-
ing outfit, the latter outfit jacking up the reels when
ready to pull, and a second method in which the cable
is pulled direct from the cable reel trailer. From stud-
ies which we have made it appears that the first method
is best adapted to very rough country where long hauls
with tractors are necessary in order to spot the reels
in difficult rights-of-way, whereas the second method
saves time and expense, providing the country is rela-
tively flat and accessible to good roads. Tractors fitted
with winches, and other special equipment, are justified
on large projects.

Splicing

Because the cable and strand have different coeffi-
cients of expansion it is necessary to compensate for
this by splicing the cable under tension whenever the
temperature is below 40° F. in order to minimize buclc-
ling in subsequent hot weather. This necessitates se-
curing the cable with a grade clamp in the middle of
each length and pulling the ends of the cable together
at the point where a splice is to be made. This tension
stretches the cable to an amount which approximately
compensates for the difference in the coefficients of ex-
pansion between the cable and strand. The tension
set up also straightens the cable, eliminates curves and
bends at poles and aids in preventing accumulation at
these points when the cable expands under rising tem-
perature.

Gas Pressure Testing

Gas pressure testing is a subject in which every
cable man is vitally interested. The advantages of
testing out new construction work with gas pressure
are generally well recognized. The method is simply
one in which a completed loading section is filled with
nitrogen gas before cutting in the loading, both ends
of the section being capped. After the pressure is
equalized, pressure gauge readings at both ends are

[117]

Bell Telephone Quarterly

noted and then recliecked a day later. If the recheck
indicates that gas is being lost, the several splices in-
volved are soaped to locate the point where the gas is
escaping, or the cable ridden to find a crack or puncture.
The success of this method of testing out new construc-
tion has led to further experiment with a view to main-
taining toll cables under gas pressure. This will be
touched upon subsequently in this paper.

Completion and Service Tests

Completion and service tests are important consid-
erations which should not be overlooked in scheduling
a new toll cable. The completion tests are compre-
hensive and extensive and comprise the following meas-
urements on all circuits:

Insulation

Loop resistance

Crosstalk

Resistance unbalances

Impedance unbalances

Impedance runs

Usually some errors are found and time must be
allowed for clearing them. When the cable passes
these tests satisfactorily it is considered completed but
service tests, consisting of a check of impedance and a
transmission test, must also be made for each circuit
as it is put in service.

In meeting a service date there is a tendency to con-
tinue construction right up to the ser^dce date. This
may be necessitated by bad weather, improper planning
or delays of one sort or another which cause the Con-
struction Department to get behind its schedule. The
completion tests and the service tests suffer from delays
in the construction schedule. It is important therefore
to make allowances where possible for delays in order
that proper time will be allowed for the completion
and service tests prior to putting the cable in service.

[118]

Long Toll Cable Construction and Maintenance

Cable Maintenance

Cable maintenance grows as a problem not only
because of the amount concerned and the fact that much
service is in the sheath but also because, as the cable
ages, there is an accumulation of things all of which
seem to operate in the direction of increasing causes of
trouble. On underground cables the major trouble
making factors are highway changes, subsurface opera-
tions of others, electrolysis, improper racking in man-
holes, heavy road vibration, interference by our own
workmen, floods, etc. Similarly, on aerial cables the
trouble making factors are bullet holes, tree interfer-
ence, buckling and ring cuts, fires and electrical burns,
etc.

The principal consideration in cable maintenance
is to keep the sheath water tight. Constructive sugges-
tions along the line of preventive maintenance are as
follows :

For Underground Cables, more consideration to
proper duct assignments, better set-ups and more care-
ful racking in manholes, better contact with municipal-
ities and highway contractors, education of employees
designed to promote a more careful handling of cables
in underground runs, suitable designations for toll
cables, better electrolysis surveys particularly those
which involve the maintenance of existing drainage
connections in conduit and more frequent inspections
of manholes.

For Aerial Cables, more frequent inspections, better
contact with municipalities and highway contractors,
splicing aerial cable under tension during construction
and particularly straightening out of aerial cable be-
fore splicing, in order to eliminate irregularities which
later develop into buckles and ring cuts, elimination
of fire hazards and construction of new cables over
routes which are free from fire hazards, cleaner and
wider right-of-way.

[ 119 1

Bell Telephone Quarterly

Fire Hazards

The protection of aerial cables from fire in adjacent
inflammable structures has been given much thought.
Hazards have been eliminated by rerouting the line,
by mo^dng the hazard and by constructing underground
dips. When these methods are not practicable and
wherever there is a reasonable separation between the
hazard and the cable, consideration has been given to
protecting the cable and messenger with a fire resisting
shield.

After many tests, a cylinder of asbestos shingle ma-
terial, split longitudinally, is being tried out. The
edges are butted by means of a copper strip of " H "
cross-sections and the completed cylinder is bound with
copper bands. Shields weigh from 7 to 10 lbs. per foot
and require an additional messenger strand for sup-
port. We expect this arrangement to be satisfactory
for small buildings twenty feet or more from the cable
line.

Trouble Clearing

Trouble clearing is that phase of maintenance which
deals with locating and repairing the cable sheath or
conductors after the damage has been done. Testing
apparatus and methods have been perfected to a point
where they are very accurate in trouble locations. The
new Wheatstone bridge, together with temperature
correction curves and intensive training of testboard
employees, all have done much to improve testing re-
sults.

New cables are being manufactured with one quad
of enameled wire in order to assure a good wire for
Varley measurements even though a cable may be sat-
urated with water at a given point. Leak alarm cir-
cuits are being tried out placed in the outside layers and
connected with alarm devices in central offices in order
to assist testboards in detecting cable troubles in the
early stages.

[120]

Long Toll Cable Construction and Maintenance

Permanent Gas Pressure

The testing methods referred to above are based on
locating sheath defects after moisture has entered the
cable and grounded certain conductors. Thus impaired
service is a prior condition to locating and clearing the
trouble. In underground cables this is particularly
serious since a trouble may not be detected or located
until a cable has failed altogether. This brings us to
the subject of permanent gas pressure on toll cables.
Its effectiveness in avoiding service interruptions
should not be interpreted to mean that it eliminates the
need for preventive maintenance. Permanent gas
pressure will not prevent sheath breaks. It does, how-
ever, enable us to locate and clear sheath breaks before
service is affected. Therefore, it is important not to
neglect the cable sheath merely because gas pressure
gives us a means of locating sheath breaks before serv-
ice is affected.

Briefly, the work which has been done to date in
placing toll cables under permanent pressure, includes
sealing the cable at both ends and at all lateral taps
with beeswax plugs, installed without interrupting
service. In addition to plugging the cable at the ends
and at lateral taps, intermediate plugs are installed at
approximately 10-mile intervals, in order to sectionalize
the cable for use in locating sheath breaks. Tire valves
are soldered into the sheath at approximately one-mile
intervals. Gas is introduced at approximately 40
pounds pressure at each valve in the section. When
equalized throughout the section the pressure is between
15 and 20 pounds. The cable is also equipped with
alarm gauges which automatically indicate in adjacent
test rooms any lowering of the pressure in any section
of the cable.

Drying out with Gas

Another important advantage of the nitrogen gas
in maintenance work is the drying property of the gas

[121]

Bell Telephone Quarterly

[122]

Long Toll CaUe Construction and Maintencmce

admitted on either side of a cable which is wet. In
several instances, we have avoided pulling in and cut-
ting over a new section of cable. In many other in-
stances we have practically restored complete telephone
service within three or four hours after a failure. In
these latter cases, the gas was applied and the drying
out process continued up to the time when the duct
was rodded, the new cable pulled in and the splicers
were ready to cut over. The drying out process not
only restored practically all of the telephone service,
but materially aided the splicers in toning through the
defective section when cutting over. We are reason-
ably certain that only those cases where the cable is
slightly wet can be dried out completely with gas.
Cases where the cable is thoroughly saturated with
water must be handled in the usual manner— either re-
placing the section or cutting in a short piece of cable.
The gas, however, is helpful in all cases in partially
restoring service prior to the cutover and in aiding
splicers in the actual work of cutting over.

L. N. Stoskopf.

123

An Index of General Business Activity

THE recent completion of a revision, for the pe-
riod since January, 1919, of the index of gen-
eral business activity in the United States,
constructed by the Chief Statistician's Division of the
American Telephone and Telegraph Company, fur-
nishes a pertinent occasion for the brief discussion of
that index, which is the subject of this article. The
chart on the follo^ving page shows the revised index-
frequently called a " general business curve "—for the
decade 1919 to 1928, inclusive. While the revision of
the index has not materially altered the appearance of
the curve from its previous aspect, nevertheless since
certain recently available industrial statistics and newly
developed methods of statistical analysis were employed
in the process of revision, it is felt that the new index
has some distinct improvements over the former one
as an indicator of the course of general business activity
in the country as a whole.

As has been pointed out in previous articles in this
Quarterly,' it has been found useful in the Bell System
to have available a measure of fluctuations of business
activity outside the telephone industry, as a basis for
comparisons vnth fluctuations within the telephone
business. This is so in spite of the fact that the tele-
phone business as a whole is one of exceptional stability,
relative to its long-term rate of gro\\i;h, as compared
with many classes of manufacturing and merchandis-
ing industries. Statistical analysis has indicated, how-
ever, that in certain phases of the telephone business
there are fluctuations due to factors other than those
reflected in long-tenu growth and seasonal characteris-
tics, and that these fluctuations tend to synchronize with
the so-called " cyclical " fluctuations in external busi-

1 The Statistical Study of General Business Conditions, October, 1924;
Measures of Regional Business Activity, April, 1928.

[124]

An Index of General Business Activity

ness activity. It is clear, therefore, that a measure of
general activity based on significant indices, sufficient
in number to be relatively free from the peculiarities
inherent in any single external index that might be se-
lected, would be a substantial aid in interpreting fluc-
tuations of such elements within the telephone business.
Furthermore, not only would such an index be of serv-
ice in evaluating past tendencies and in interpreting
current performance, but it would also provide a basis
whereby forecasts of general business activity might
be expressed in quantitative terms and might therefore
be more easily applied in the preparation of estimates
of future telephone operations and results.

30

20

1-

5 10

u

NORMAL

cr 10

UJ

Q- 20
30

GENERAL BUSINESS
COMPARED WITH NORMAL

30

20

h

10 S
o

NORNML

10 a:

20 Q-
30

A

I l\i

^

/

^\

A I

M/

u^

M

/

It

\

/

^

\

\

f

\.

/

V

V

1919 1920 1921 1922 1923 1924 1925 1926 1927 1928

Chakacter and Composition of the Index

In the major cyclical movements of general indus-
trial activity upward or downward, it is likely to be true
that most important industries are moving in unison
at least as to direction. There have, of course, always
been certain industries or lines of business which at

[125]

Bell Telephone Quarterly

any given time have moved coimter to the general pic-
ture either because one man's meat is another man's
poison, or because they tended to precede or to lag be-
hind the general run of industries in their movements.
Telephone traffic, however, as has been indicated, tends
to move pretty much in step with the general average
of industrial activity at any given time. It therefore
seems clear that the general business index against
which telephone movements would be compared, should
be primarily an index which gives a reasonably good
composite picture of fluctuations in external activity.
This circumstance conditioned in no small measure the
type of index to be constructed on the basis of such sta-
tistics as were available. The availability of statistics
was naturally a major consideration. So, too, was the
factor of relative sensitivity of the series to be in-
cluded in the index. Given the fact that certain statisti-
cal processes can make due allowances, w^hen necessary,
for varying degrees of sensitivity, it is clear that the
more sensitive the index, the more likely it is to call
attention promptly and definitely to any real changes
in the general business situation. An index represent-
ing largely basic production at or close to the raw ma-
terial stage tends to be sensitive in its movements.

Obviously, for the early years covered by the general
business index, the number of available statistical ser-
ies which could be used as indicators of business activity
in the United States was small. For the period from
January, 1877, to December, 1884, indeed, the index is
based solely on an analysis of the productive capacity
of blast furnaces active at the beginning of each quarter
of the year.' Beginning with January, 1885, monthly
bank clearings outside of New York City were added
to the composition of the curve, and in the same year
figures on blast furnace capacity became available

2 As indicated, the general business index extends back to 1877, although
the accompanying chart shows the curve only over the period involved in its
latest revision. The monthly points of the index since 1877 are given in the
table at the end of this article.

[126

An Index of General Business Activity

monthly instead of quarterly. For the eleven years
ending in 1902, the curve had three components : blast
furnace capacity, bank clearings, and Bradstreet's
monthly index of wholesale prices. Later on other
series of data were added, and certain ones were
dropped from time to time. Among these were pig iron
production, gross operating revenues of railroads, net
surplusages or shortages of freight cars, copper pro-
duction, revenue freight car loadings, net ton miles of
freight carried by Class I railroads, bituminous coal
production, steel ingot output, electric power produc-
tion, lumber production, consumption of raw cotton by
textile mills, etc.

Prior to the recent revision of the index, the com-
posite curve for the period since October, 1923, included
eleven series of figures. No series involving dollar to-
tals or prices were employed during that period; all
the components of the index being series representing
voliune of activity measured in physical units, such as
tons of coal, or bales of cotton, or cars loaded with
freight. All but three of the series represented activity
in basic industries at or close to the raw material stage,
the three exceptions being two railroad series and
monthly statistics of electric power production. These
three last named series are still found in the revised
curve, which, in addition, includes ten stricth^ indus-
trial series, all of the same general character as the
eight previously used.

The latest revision of the general business index was
undertaken in order to provide a consistent set of com-
ponent items for the period since the beginning of 1919
and to incorporate revised seasonal factors and trends
wherever necessary. As a result of a thorough review
of available industrial statistics, and of the significance
of these statistics for the fundamental purpose of the
index, series of statistics representing the following
items were selected: cotton consumption, woolen ma-
chine hours active, pig iron production, steel ingot pro-

[127]

Bell Telephone Quarterly

duction, lumber production, sole leather production,
gasoline production, bituminous coal production, cop-
per production, zinc production, electric power produc-
tion, freight car loadings, and net freight ton miles.
Many other series were considered in this review, but
were discarded for one reason or another. Moreover,
experiments have shown that the inclusion of addi-
tional series of similar character would not perceptibly
affect the movements of the composite curve based
upon the 13 series above mentioned.

Ameeican Telephone and Telegraph Company General Business Curve
{Expressed in terms of percentage deviations from normal)

1877

1878

1879

1880

1881

1882

1883

1884

1885

1886

1887

1888

1889

Jan. .
Feb..
Mar..
Apr. .
May.
June.
July. .
Aug..
Sept..
Oct..
Nov..
Dec.

■ 9

• 9
•10
■11
■10

■ 8

■ 7

■ 7

• 7

• 7

• 7

-13
-13
-13
-13
-11

- 9

- 7

- 3
+ 2
+ 6
+ 6
+ 7

+ 7
+ 9
+ 11

+ 12
+ 10
+ 8
+ 7

+ 7
+ 7
+ 7
+ 9
+ 11

+ 12
+ 12
+ 12
+ 12
+ 12
+ 13
+ 13
+ 13
+ 12
+ 12
+ 12
+ 11

+ 11
+ 11
+ 12
+ 12
+ 10
+ 8
+ 5
+ 7
+ 9
+ 10
+ 10
+ 9

■16^

■19

■17

■16

■19

■14

■11

•15

■14

■12

■11

■ 9

-10

- 8

- 6

+ 1
+ 2
+ 3

- 2
+ 3

+ 9

+ 8

+ 8

+ 6

- 2
+ 2
+ 7
+ 5
+ 7
+ 1

+ 8
+ 7
+ 5

Av.

-11

- 5

+

+ 12

+ 10

+ 2

-10

-14

- 2

+ 4

- 1

+ 5

1890

1891

1892

1893

1894

1895

1896

1897

1898

1899

1900

1901

1902

Jan . . .

+ 11

+ 5

+ 9*

+ 12

-14

- 3

- 1

-13

- 3

+ 1

+ 10

- 1

+ 2

Feb. . .

+ 8

+ 1

+ 14

+ 12

-16

- 9

- 2

-11

- 2

+ 1

+ 11

0

+ 2

Mar.. .

+ 10

- 5

+ 11

+ 12

-14

-10

- 7

-12

- 3

+ 4

+ 10

+ 2

+ 2

Apr. . .
May. .

+ 12

- 6

+ 9

+ 11

-14

-11

- 5

-12

- 7

+ 1

+ 8

+ 5

+ 5

+ 17

- 7

+ 7

+ 11

-14

- 8

- 8

-15

- 7

+ 2

+ 6

+ 4

+ 5

June. .

+ 15

0

+ 9

+ 5

-20

- 6

- 8

-13

- 4

+ 3

+ 6

+ 3

+ 2

July...

+ 16

+ 8

+ 6

- 2

-18

- 1

- 8

-14

- 8

+ 3

+ 3

+ 4

+ 4

Aug. . .

+ 12

+ 7

+ 6

-13

-10

0

-14

-10

- 5

+ 6

0

+ 4

+ 3

Sept. . .

+ 15

+ 13

+ 7

-17

- 7

+ 1

-16

- 3

- 5

+ 8

- 3

0

+ 6

Oct...

+ 17

+ 12

+ 8

-17

- 7

+ 6

-17

- 4

— 7

+ 9

- 3

+ 3

+ 5

Nov.. .

+ 8

+ 7

+ 10

-16

- 6

+ 4

-16

- 4

- 4

+ 8

- 4

+ 2

+ 2

Dec. . .

+ 5

+ 7

+ 12

-15

- 4

+ 3

-13

- 2

- 2

+ 11

- 4

+ 1

+ 3

Av....

+ 12

+ 4

+ 9

- 1

-12

- 3

-10

- 9

- 5

+ 5

+ 3

+ 2

+ 3

[128

An Index of General Business Activity

Statistical Processes

Before the series are combined into the general com-
posite index, each series is adjusted for its own seasonal
variation and its computed long-time trend, with the
further refinement for the years subsequent to 1919
that, where appropriate, the monthly data have first
been reduced to a daily average basis before adjustment
for seasonal factors, in order to eliminate all changes
due merely to calendar shifts. After seasonal and
trend adjustments have been made, the monthly data
have been expressed as percentage deviations from the

Ameeican Telephone and Telegraph Company General Business Curve
(Expressed in terms of percentage deviations from normal)

1903

1904

1905

1906

1907

1908

1909

1910

1911

1912

1913

1914

1915

Jan . . .

+ 3*

-10

- 5

+ 10

+ 17

-14

- 5*

+ 12

0

- 2

+10*

0

-16

Feb. . .

+ 1

- 5

- 5

+ 9

+ 14

-15

- 5

+ 10

- 1

+ 3

+ 8

- 2

-13

Mar. . .

+ 2

- 8

- 2

+ 7

+ 15

-15

- 5

+ 12

0

+ 3

+ 3

0

-12

Apr. . .

+ 4

- 6

- 1

+ 5

+ 16

-14

- 5

+ 11

- 3

+ 6

+ 5

- 1

- 9

May. .

+ 3

- 8

0

+ 8

+ 18

-17

- 3

+ 6

- 2

+ 5

+ 5

- 5

- 8

June. .

+ 2

-10

0

+ 7

+ 16

-17

- 2

+ 7

- 1

+ 3

+ 4

- 4

- 4

July. . .

+ 3

-12

- 1

+ 7

+ 18

-16

+ 1

+ 4

- 2

+ 5

+ 5

- 2

- 3

Aug...

- 1

-12

0

+ 8

+ 16

-13

+ 2

+ 4

- 1

+ 6

+ 2

- 8

- 2

Sept...

- 2

- 8

+ 2

+ 5

+ 12

-11

+ 5

+ 4

- 1

+ 5

+ 3

-10

+ 2

Oct...

- 6

- 9

+ 2

+ 10

+ 13

-11

+ 8

+ 4

- 1

+ 8

+ 5

-13

+ 5

Nov.. .

-11

- 4

+ 4

+ 11

- 4

- 9

+ 9

+ 2

- 1

+ 7

- 1

-17

+ 9

Dec. . .

-14

- 5

+ 7

+ 13

-12

- 8

+ 10

+ 1

- 2

+ 7

- 2

-18

+ 14

Av....

- 1

- 8

0

+ 8

+ 12

-13

+ 1

+ 6

- 1

+ 5

+ 4

- 7

- 3

1916

1917

1918

1919

1920

1921

1922

1923

1924

1925

1926

1927

1928

Jan . . .

+ 11

+ 17

+ 4

+ 3*

+ 9*

-19

-20

+ 7

+ 1

+ 5

+ 5

+ 5

- 3

Feb. . .

+ 12

+ 13

+ 3

- 3

+ 9

-22

-17

+ 6

+ 4

+ 5

+ 4

+ 6

- 2

Mar. . .

+ 13

+ 14

+ 10

- 8

+ 10

-26

-13

+ 11

+ 2

+ 3

+ 4

+ 8

- 1

Apr. . .

+ 9

+ 12

+ 10

- 5

+ 3

-27

-18

+ 15

- 3

+ 3

+ 4

+ 5

0

May. .

+ 12

+ 14

+ 13

- 6

+ 7

-24

-14

+ 15

- 9

+ 2

+ 4

+ 6

+ 1

June . .

+ 11

+ 12

+ 10

- 2

+ 9

-26

- 8

+ 14

-14

+ 2

+ 6

+ 7

+ 1

July...

+ 8

+ 10

+ 14

+ 3

+ 8

-27

- 6

+ 13

-15

+ 3

+ 6

+ 6

+ 4

Aug. . .

+ 12

+ 10

+ 15

+ 4

+ 7

-26

-10

+ 9

-11

+ 4

+ 7

+ 5

+ 4

Sept...

+ 13

+ 7

+ 11

+ 3

+ 5

-25

- 5

+ 6

- 7

+ 2

+ 9

+ 3

+ 5

Oct...

+ 15

+ 9

+ 10

- 1

+ 1

-20

- 1

+ 3

- 3

+ 4

+ 9

0

+ 6

Nov. . .

+ 17

+ 11

+ 5

- 2

- 6

-20

+ 4

+ 1

- 2

+ 6

+ 7

- 3

+ 5

Dec. . .

+ 16

+ 6

+ 6

+ 3

-12

-21

+ 7

- 2

+ 2

+ 6

+ 7

- 5

+ 3

Av....

+ 12

+ 11

+ 9

- 1

+ 4

-24

- 8

+ 8

- 5

+ 4

+ 6

+ 4

+ 2

' Denotes months in which composition of curve changes.

[129]

Bell Telephone Quarterly

calculated nomial or seasonally adjuste'd trend. These
percentage deviations then represent in each case those
fluctuations found in the series in question, which, how-
ever they may be explained, are presumably not due to
the factor of trend, on the one hand, or to seasonal
changes, on the other. That is to say, they show the
'' business cycle " and other non-recurrent (or so-called
" accidental ") fluctuations in the series, which are the
movements which the curve seeks to measure. Each
series has then been expressed in terms of its standard
deviation, and the composite represents a weighted av-
erage of the series so expressed.

The determination of the weights which were as-
signed to the individual series was based upon a num-
ber of economic and statistical considerations, of which
the principal one is the relative degree of representa-
tiveness of the general picture which was believed to
inhere in each series. The iron and steel series reflect
not merely conditions in the steel industry itself, but
also in the principal industries consuming steel, such
as the automobile, railroad equipment, building and
oil industries. The railroad series and electric power
production naturally reflect all types of industrial ac-
tivity. The railroad series in addition also reflect dis-
tribution. And so on through the list, the several
series reflect in varying proportions not only their own
inherent activity and contribution to the country's in-
dustrial life, but also the activity of other industries
which consume the products and services of those indus-
tries directly represented in the index.

It is easy to overemphasize the influence of the
weighting given to component items on the movements
of a composite index of general business. It is ob^dous,
however, that a reasonable system of weights, applied
to a fair sample of series of data reflecting general busi-
ness or industrial activity, should help that sample to
represent aU the better the general economic picture
which it aims to portray. That a reasonable system of

[130]

An Index of General Business Activity

weights has been applied in the present case would seem
to be indicated by the fact that the revised general busi-
ness index, although containing only thirteen series,
moves in close consonance with certain other indexes
comprised of a much larger number of components,
such as, for example, the index of industrial produc-
tion of the Federal Reserve Board.

Undoubtedly this general business index, as well
as other general indexes of business activity, may be
subject to occasional criticism, particularly by persons
outside the telephone industry. On this point, how-
ever, it is always well to remember that the index de-
scribed herein has been constructed primarily for use
where applicable in connection with factors within the
telephone business. It does not seek to measure the
actual amplitude of cyclical fluctuations in all branches
of economic activity, but it is merely designed to re-
flect, in a sensitive way, certain of the external move-
ments which are helpful in studies of the telephone
business. If it accomplishes this aim, it serves the pur-
pose for which it is intended.

The two preceding tables show to the nearest per
cent, the monthly points on the curve for the 52 years
from 1877 through 1928. Each of these points repre-
sents the percentage deviation of the index from '' nor-
mal.''

Paul J. Webek.

Editor's Note: Mr. Weber is of the Chief Statistician's Division of the
American Telephone and Telegraph Company.

[131]

Standardization in the Bell System — II

Introductory Note

IN the January 1929 issue of the Bell Telephone
Quarterly appeared the first part of a paper on
'' Standardization in the Bell System " prepared
in response to a request from the National Industrial
Conference Board. A more complete statement re-
garding the preparation of this paper was given in
an introductory note to the first part.

The second and concluding part of this paper is
given below.

The Editors.

Standardization of Manufacturing Plant, Equip-
ment AND Processes

In the Manufacturing Department standardization
of manufacturing processes is closely related to stand-
ardization of the factory buildings themselves, their fix-
tures, such as heating and ventilating systems, and gen-
eral manufacturing equipment. The cost of designing
and erecting structures whether required in new loca-
tions or as additions to existing plant facilities has been
reduced to a minimum by predetermining building unit
designs adapted to specific manufacturing require-
ments, the units being increased in number as require-
ments demand.

Many years ago a standard building mdth was
adopted which made possible an economizing of build-
ing space permitting the use of machinery, benches,
racks, etc., with dimensions most suitable for installa-
tion in the building. The productivity of a fixed in-
vestment in buildings has been increased, and an im-
portant economy in the cost of installation of their
equipment has been realized.

[132]

standardization in the Bell System

In the design of buildings for the new manufactur-
ing plant at Kearny, New Jersey, a uniform column
spacing is maintained throughout all multi-story build-
ings. A great many advantages relating to occupancy
have been realized from this standardization. An ex-
ample is a reduction in cost of approximately 50 per-
cent in constructing and erecting metal partitions.
Uniform column spacing made it possible to design par-
tition panels of a standard width which is an even frac-
tion of the spacing of columns. This eliminated the
necessity of making drawings of each partition in-
stalled, as it is sufficient to indicate on the standard floor
plans the position of each panel. The cost of construct-
ing and erecting partitions has been reduced by increas-
ing the proportion of construction work yfhioh may be
performed in the machine shop in larger lots and by
economical methods and suitable equipment, rather
than in the field where adequate facilities are not avail-
able.

It is the responsibility of one organization within
the Manufacturing Department to see that all new ma-
chinery is in accordance with established standards, or
to recommend new standards for new conditions. In
some specific cases where another type of machine will
be more economical for some heavy running part, it is
desirable to depart from these standards. There are
many advantages incident to having a standard type
machine for each class of work : low^er first cost because
of volume buying, ease in applying standard safety
measures, adaptability to standardized processes, adap-
tability for use with standardized associated equip-
ment, such as benches and trucks, flexibility of the
machine equipment to meet peak loads and interchange-
ability of machine parts, which reduces the cost of main-
tenance.

Not only the machines themselves but their associ-
ated parts, such as bearings, clutches, hand wheels, con-
trol levers, mountings for electrical apparatus and lub-

[133]

Bell Telephone Quarterly

rication systems, are standardized. As far as possible
these standards are applied to the machines purchased
as well as to those made in the shops.

Manufacturing fixtures such as shop benches, lock-
ers, racks, trunks, etc. have been standardized and the
advantages of such standardization appear daily in the
manufacturing work. In preparing arrangements of
office and shop departments, as the dimensions of each
item to be installed is known in advance its position may
be fixed without requiring its measurement in each in-
stance. This not only reduces the cost of fitting man-
ufacturing equipment in the space allotted to it, but
also makes possible floor space conservation by the best
arrangement of equipment, and important economies
later in its operation by providing for the convenience
of the workmen. Standardization of these items has
had the usual effect of reducing the cost of their manu-
facture by making possible quantity production of a
small number of items, rather than small quantity man-
ufacture of a large number of items.

Considerable benefit has been derived from the
standardization of tools and gauges and design prac-
tices. Standard and typical drawings have been made
for various types of punches and dies, drill jigs, fix-
tures, and other classes of tools. Parts such as drill
bushings, latches, gauge pins, jig feet, clamping cams,
punch and die holers, line guide and dowel pins, stops,
springs, die blanks, etc., have been standardized. Many
of the different sizes of these parts have been replaced
by common sizes reducing the sizes stocked to a small
percent of the original. This and standardization of
design greatly reduced the raw materials necessary to be
carried, and in most cases replaced the practice of mak-
ing parts as required for each tool by the more econom-
ical one of producing these parts in quantity lots of few
tj^es, to be stocked and dra^vn for use as required.

Tool steels have been classified and assigned code
numbers, and a table lists the proper steels to be used

[134]

Standardization in the Bell System

for standard and common types of tools and parts.
Tools and parts purchased from suppliers have been
standardized and stocked to avoid duplication, insure
interchangeability, facilitate replacement and repair,
and secure the advantage of quantity purchasing.

Standardization has simplified and reduced the cost
of design work, and has also secured better uniformity
and more economy of design, considering manufacture,
operation and maintenance. It has permitted the man-
ufacture of standard parts on a quantity production
basis with its resulting economy, and due to the selec-
tion of available standard designs has facilitated the
adoption of standard methods in building of tools to re-
duce their cost.

As an example of the results of standardization in
tool making, when an open compound punch and die of
a relatively common type is required, the only design
work necessary is to lay out the special die form and
to specify by code number the standard parts to be
drawn from stock to be assembled in the tool. The ma-
jority of these are usually available. The special parts
will be made and assembled with the stock items to com-
plete the tool. It is estimated that a tool made by these
standards will result in a saving of one third on the
average over the cost of producing the same tool by
making drawings of each part individually and pro-
ducing all of the parts at the time the tool was built.
This percentage will, of course, vary considerably de-
pending on the type and complexity of the tool and the
extent to which standards may be applied.

The manufacturing processes for all material made
in large quantities in the Western Electric Company
are covered by operating instructions or ** manufactur-
ing layouts." A Planning organization originates
these manufacturing layouts, directing the employment
of processes and equipment that have been carefully
standardized to give the highest quality of product and
to be most economical of time and material.

[135]

Bell Telephone Quarterly

Many of the processes that are specified in the man-
ufacturing layouts are covered by process standards.
This enables the planning organization merely to spec-
ify the proper standard, without going into the detailed
description of the process to be followed. For ex-
ample, wood finishes are covered by standards that spec-
ify all of the materials to be used, such as varnishes,
shellacs, sandpapers, and rubbing compounds, and give
the drying periods. These standards are accompanied
by samples of the finish that is to be matched.

Another example is found in the standardization of
methods to be used in the carrying out of chemical proc-
esses, such as electroplating. In this case the process
standard specifies the density of the electrolyte, the tem-
perature, the current intensity, etc.

Heat treating processes are similarly covered by
standards so that when a new product is to be made, it
is merely necessary to specify the standard in accord-
ance with which it is to be heat treated.

The use of standards of this kind not only simplifies
the work of making the manufacturing layouts, but it
also simplifies the introduction of the manufacture of
new products in the Shop, as the operating people are
already acquainted with these standard processes and
have the necessary materials and equipment already
available.

Standardization in Distribution and Installation

In distributing and installing apparatus and equip-
ment, the standardization of methods, tools and ma-
terials is also of great importance.

When the thousands of orders transmitted to the
Electric Company for execution and the large number
of sources from which these originate are considered
the value of standardized methods of ordering is ap-
parent. Standard requisition forms originating with
the telephone companies convey the orders, along with
necessary shipping instructions, to the distributing

[136]

Standardization in the Bell System

houses of the manufacturer. To facilitate the hand-
ling of orders for complicated assemblies of equipment,
such as complete central office equipments or large long
distance offices, a series of ordering questionnaires has
been developed. These questionnaires accompanied by
necessary building plans and other drawings provide
in an orderly sequence all the data necessary to acquaint
the equipment engineers with the detailed requirements
of the project ; they are designed to suggest the use of
standard equipment and arrangements wherever pos-
sible.

When such an order requiring engineering work
by the Western Electric Company reaches one of its
factories, the Equipment Engineering Department
translates the telephone companies' requirements into
manufacturing specifications and drawings utilizing
standard equipment specifications and drawings on
eighty to ninety percent of all orders for central office
equipment units, such as switchboards, desks, and the
mechanical units for dial offices. This results in stand-
ardizing the information which goes to the Manufac-
turing, Installing, and Pricing Departments, and min-
imizes the effort required to engineer, manufacture,
test, install and price the equipment.

Even when supplementary equipment is required
to meet certain local conditions and is not suitable for
standardization the method of preparing the manufac-
turing specifications is standardized through the use
of standard equipment engineering specification forms,
which list the standard editing information for a par-
ticular unit of equipment and leave the quantities to
be filled in by the engineers. This not only reduces the
engineering effort, but also maintains uniformity in
arrangement and sequence of the information in the
specifications thereby adding greatly to the convenience
with which such specifications may be used by other
organizations.

An important advantage of equipment standardiza-

[137]

Bell Telephone Quarterly

tion is that it permits the resultant standardized units
to be stocked or otherwise made available on a short
delivery basis.

By stocking standard units the delivery intervals
on certain types of central office and private branch
exchange equipment have been greatly reduced in the
past few years. For example, the delivery interval for
certain private branch exchange equipments was re-
duced from six months to one month. Furthermore a
great many special features have been dispensed with
which were formerly thought necessary when equip-
ment was ordered on a custom built basis, and because
of the much smaller variety, production authorizations
may now be placed on the Manufacturing Departments
in larger quantities or on an even flow basis so that pro-
gressive assembly methods may be applied which result
in lower overall engineering and manufacturing costs.

As an aid in establishing and maintaining standard
equipment designs and in giving such standards neces-
sary publicity with the telephone companies, the man-
ufacturer's standard specifications, stock lists, catalogs,
and price lists are published and distributed to the
customers.

These plans do not retard the work of the develop-
ment engineers in effecting improvements in design.
Improvements and changes, however, are made on an
annual basis unless the advantage of the improvement
makes it expedient to introduce it at once. This fa-
cilitates the introduction of new designs and minimizes
the effect on stocks and schedules.

In the case of central office and toll equipment espe-
cially, it is usually the function of the Western Electric
Company to erect or install the equipment and to de-
liver it to the customer as a complete operating unit.
Standard methods for planning, estimating and per-
forming the installation work have been established and
are prescribed for the guidance of installation crews
working in all parts of the country. All necessary

[ 138 ]

Standardization in the Bell System

tools, fixtures, gauges, and testing devices are covered
by standard designs, and these standards are specified
for use wherever they apply. Such things as scaffold-
ing, temporary lighting, storerooms and job office
equipment are also standardized.

The standardization of apparatus greatly facilitates
the standardization of packing methods and shipping
containers.

The thousands of different items which must be
packed and shipped by the Western Electric Company
makes the packing problem an extremely important
one. In developing standards of packing consideration
has to be given not only to the first cost of containers
and packing material but also to the serviceability of
the package from the standpoint of withstanding abuse
in transit, to the convenience with which it may be
handled and stored in the Western Electric Company's
warehouses and in the Telephone Companies' store-
rooms, and even, in the case of subscriber's station
equipment, to the convenience with which the package
may be finally distributed to the subscriber's premises.

When a new method of packing, or a new type of
container has proved to be better for a certain item than
an existing method, or container, its application to other
items is immediately considered; however every effort
is made to keep the variety of sizes and shapes of con-
tainers at a reasonable minimum.

To assure uniform methods where products are
packed at more than one location and to preserve the
standard designs, specifications and drawings covering
the method and designs are prepared and accumulated
in a packing manual.

Standard methods instructions are distributed to
the installers in the form of handbooks. Catalogs of
standard tools and supplies, giving information as to
how and where each item may be obtained are also sup-
plied to the men. The sequence in which apparatus
and material can best be used by the installers has been

[139 1

Bell TelepJwne Quarterly

studied and standard shipping schedules are prescribed
to insure that the work may proceed in an orderly
manner.

Before a completed equipment is turned over to the
telephone company certain standard final tests are ap-
plied by the installers to assure its satisfactory per-
formance. This insures that a certain circuit will be
tested in the same manner and must meet the same re-
quirements whether installed in New York or on the
Pacific Coast.

The procedure and methods for making tests and
the testing equipment have been standardized to con-
form to the standard tests. A number of standard
sizes and types of test set containers have also been
adopted.

Standardization in Eelation to Operation

As a part of the work of the General Departments,
the best methods for the construction of telephone plant
are worked out, taking account of the experience of all
of the Operating Companies. These methods are pre-
sented in the form of construction handbooks, which
are made available to all of the operating companies
through a common source in order to get the advantage
of quantity production.

The standard construction practices are based upon
the use all over the country of standard t}^es of con-
struction material. This standardization of materials
makes it possible for the purchasing organization to
buy very large quantities of a relatively small number
of types of material with resultant large savings in
cost. Also with shifting of needs men engaged in con-
struction work can transfer easily from one part of
the System to another. It is common practice, in cases
of emergency due to large storm damage or other causes,
to temporarily concentrate in one small area construc-
tion gangs from a number of different operating com-
panies. These men have no difficulty with the work

[140]

Standardization in the Bell System

in a new area because of the uniform construction prac-
tices in use throughout the country. Furthermore, in
severe storm emergencies the fact that the material
needed has been standardized makes it possible to ob-
tain it quickly in great quantities from the many points
where it is stocked throughout the country.

The maintenance practices are standardized in ways
similar to those discussed for the construction prac-
tices. Bell System maintenance practices are prepared
by the general departments, making use of the mainten-
ance experiences of the operating companies and of
general investigations of the relative advantages of dif-
ferent practices and methods. These standard prac-
tices are printed in quantity and are ordered by the
various companies for use as required. In addition to
the advantages discussed above for uniform construc-
tion practices, there is a further advantage, important
from the standpoint of toll service, that men at widely
separated points and employed by different companies
are using the same practices for the maintenance of
telephone circuits and equipment. These men can,
therefore, deal with each other at long range effectively
without misunderstanding because of their common
background of methods and materials.

It is perhaps in considering traffic operating prac-
tices that the advantages, and indeed, the necessity of
standardization in relation to operation, are most evi-
dent in the Bell System. The telephone subscriber has
the right to expect the same sort of operating practices
in the various cities of the country so that he may use
the telephone with a maximum of convenience. In toll
calls the operators must constantly deal with other oper-
ators in distant cities and employed by different com-
panies, and it is obviously essential that the operating
practices should be alike in order to avoid difficulties.

Standard operating practices are developed by the
general departments as a result of their studies and in-
vestigations, and taking advantage also of the actual

[141]

Bell Telephone Quarterly

operating experience of the companies. These stand-
ard operating practices are used for handling all types
of calls with the various types of standard equipment.
The practices cover local exchange service in all of its
forms, such as flat rate, message rate, coin box, indi-
vidual or party line service, etc., and also toll and long
distance service. They also cover information service
and other auxiliary services for calls requiring special
treatment.

The practices specify in detail the procedure to be
followed by operators in handling these various types
of calls, and in general specify also the phraseology to
be used by the operators, with a view to insuring max-
imum accuracy, clearness and convenience to the sub-
scribers.

As operators are constantly entering and leaving the
service, it is necessary to carry on continuously schools
for the training of new operators. Each Associated
Company maintains a Training Department and the
methods and equipment used in this training work have
been standardized throughout the entire country.

An interesting illustration of the standardization
of operating practices is given by the procedure known
as the *' Service Order Routine " for establishing new
or changing existing telephone service. These opera-
tions require the co-ordinated effort of all operating
departments of the telephone company, including ar-
rangements for installing subscribers' station apparatus
and wiring, the placing of outside wires, the inter-con-
nection of apparatus in the telephone central offices and
proper designation of the new line at the telephone
switchboard, proper tests of completed circuits, ar-
rangements for commencing the furnishing of the traf-
fic service and arrangements for proper billing and
entry in the directory and for the advice of information
operators. Extensive studies have developed general
plans for accomplishing this somewhat complicated
service function in the best possible way in a minimum

[142]

Standardization in the Bell System

of time and with maximum insurance that all the nec-
essary steps will be taken without confusion. On the
basis of these general plans each operating company
develops a specific detailed Service Order Routine
which is made standard for that company.

Standardization of Business Methods

A very valuable t}^e of standardization which may
be classed under the heading of '* business methods "
is the standardization of non-technical supplies, partic-
ularly of office supplies and furniture. Purchases of
the Bell System companies in this line exceed $5,000,000
per year and appreciable savings have been derived by
the standardization of these supplies. In addition to
the savings, such standardization has resulted in the
provision of supplies better suited to company require-
ments through the analysis by trained specialists, in
the determination of the best methods of handling sup-
plies to promote efficiency and reduce waste, and in
supervision of the quality of the supplies purchased.

The effect in reduction of costs can be illustrated
by the single item of black lead pencils, the purchase of
which amounts at the present time to more than $150,-
000 a year. Prior to standardization fifty-five different
brands were in actual use, while at the present time
only three types are used, these providing a range of
quality, with one of these grades covering 93 percent of
all requirements. The saving from standardization of
black lead pencils is estimated at $50,000 per year.

Another interesting phase of this work has been
the investigation of all clerical labor saving machines,
the development of machines best adapted to the needs
of the telephone business, and the standardization and
use of the types found most advantageous.

In a business as complicated and as widespread geo-
graphically as the Bell Telephone System it is highly
essential, in order that System reports may reflect ac-
curately the results throughout the country, that a uni-

[143]

10

Bell Telephone Quarterly

form classification of accounts be followed throughout.
The accounts of the telephone companies in the Bell
System have been standardized in accordance with those
prescribed by the Interstate Conamerce Commission,
with certain amplifications which render them more
effective for Bell telephone accounting practice and do
not impair the integrity of the accounts prescribed.
This makes it possible not only to summarize the growth
and operation of the System as a whole but also to make
significant comparisons of the results achieved by the
various operating areas. Without such a system of
uniform accounting, the unified and economical opera-
tion of the Bell System operating properties would be
very greatly hampered.

Accounting practices and methods are studied con-
tinuously by specialists in the General Staff organiza-
tion and improvements in standards which are devel-
oped are generally adopted by all the operating com-
panies. Included in the detailed accounting practices
which are generally standardized for the Bell System
are such items as cost accounting, payi'oU and voucher-
ing methods, administrative reports and budgetary con-
trol methods, inventory control methods and schedules,
auditing methods, application of mechanical devices to
accounting work, and many other similar matters which
lend themselves to standardization resulting in in-
creased economies and efficiency.

One of the routine accounting jobs which lends it-
self to standardization is that of keeping the accounts
of customers and rendering bills for service. The
value of standardization for this routine work is read-
ily seen in that in the Bell System, accounts are kept
with approximately 11,000,000 customers and more than
125,000,000 bills for exchange service are rendered each
year. More than one billion and a quarter charge tick-
ets are handled annually in order that charges for serv-
ice may be properly made against telephone users.
Nine hundred million of these charge tickets are for

[144]

Standardization in the Bell System

toll service, of which 750,000,000 must be entered sep-
arately on approximately 71,000,000 toll service state-
ments.

For the keeping of accounts there has been devel-
oped and made standard what is known as the ** ac-
counting stub plan." In this plan, stubs which form
a part of the bills are detached when bills are mailed
and take the place of ledger or card records of the ac-
counts.

For many years the preparation of bills and state-
ments as to name, address and exchange service charges
has been facilitated by the use of standard addressing
equipment.

Rendering such a vast number of bills on a monthly
basis brought about a very uneven distribution of work
with a peak load at the beginning of each month, and
to overcome this difficulty what is known as ' rotation
billing ' was introduced. Under this plan each ac-
counting office divides its accounts into six groups and
for each group bills are rendered at different dates at
five-day intervals during the month. This permits of
spreading the load over the entire month.

Along with the improvements in the practices re-
ferred to there has been a continuous development of
machinery and other labor saving devices in connection
with rendering customers' bills. To enter 750,000,000
toll charge tickets on approximate^ 71,000,000 toll serv-
ice statements presented a most fertile field for the real-
ization of economy through the development and stand-
ardization of mechanical devices. A standard form of
statement for toll billing was developed and studies
were made in conjmiction with leading manufacturers
of typewriters for de\dsing a billing machine of special
construction adapted to this particular work. After
the machine was developed and exhaustively tested un-
der careful observation it was made standard for Bell
System use and has been adopted by all of the com-
panies.

[ 145 ]

Bell Telephone Quarterly

The standardization of practices, particularly the
two referred to as '' accounting stub plan " and " rota-
tion billing plan," has made possible and practicable
the standardization of specially constructed mechanical
equipment (in addition to the toll billing typewriter
referred to above) for the preparation of customers'
bills which has been reconmiended for Bell System use.
This equipment eliminates all handwriting from cus-
tomers' bills and produces a more accurate bill than
was possible under any other plan together with im-
proved general appearance of bills. None of these
standardized billing practices imposes unnecessary re-
strictions or complications upon the employees in the
handling of business affairs with customers. Excep-
tion practices are provided so that the wishes of a cus-
tomer desiring to be billed in a manner different from
the standard or at other than prescribed billing periods
may be given due consideration.

Telephone directories have offered an important
field for standardization in spite of the fact that no two
directories are entirely alike. The paper and cover
stock used are standardized and purchased centrally
through the Western Electric Company and manufac-
tured in accordance with specifications and the supply
checked contmuously for quality. The general ar-
rangement of material in the book is standard, standard
alphabeting rules are followed in listing names, stand-
ard page sizes used, standard sizes of space offered for
advertising and standard types used in printing. In
the clerical work of compilation, standard practices are
followed. From this standardization have resulted
not only a uniformity in appearance and ease of refer-
ence, but large economies in compilation and manufac-
turing cost. It is estimated that without the standard-
ization of directory paper and the bulk purchasing
which this enables, the same quality of paper would cost
the Bell System about $800,000 more per year.

[146]

Standardization in the Bell System

Standard Provisions for Safety and Health

The plant of the Bell System is constructed to con-
form to definite standards as regards strength of con-
struction. In the formulation of these standards, con-
sideration is given to the safety of the employees and
the public, as well as to the continuity of service.

The question of safety is most important in cases
where other wire lines or railroads also are involved.
Standard requirements regarding type and strength of
construction have been established for all such cases
in co-operation with the other utilities involved. Many
of these requirements are set forth in the National Elec-
trical Safety Code. Experience shows that such con-
struction standards greatly increase the safety of work-
ers on telephone lines.

Safety is considered not only in the initial construc-
tion but also in the standard provisions for routine
maintenance which call for maintaining suitable mar-
gins of strength in plant which is in proximity to other
wire lines.

Very definite provisions have been made for pro-
tecting the public, the employees and property against
electrical hazards. As a result of co-operation between
the power and telephone companies standard provisions
have been adopted to reduce the chance of power volt-
ages or currents being introduced into any part of the
telephone plant. These rules specify standards of
strength and of separation, and the relative location of
pole lines, wires and outside equipment when placed
on the same poles, or in proximity.

Supplementing these precautions as regards power
circuits, and as a provision against damage due to light-
ning, standard installations of protective apparatus are
provided for subscribers' and central office equipment
and for cables when the wires are exposed to these haz-
ards. The use of standard arrangements throughout
the coimtry insures a uniform, high degree of safety
to the users of the telephone plant.

[1471

Bell Telephone Quarterly

Protection against fire is, of course, a very impor-
tant consideration, particularly in the planning of
buildings. Next to the safety of personnel, continuity
of service is a main objective. All telephone buildings,
except for certain small offices, are made fire resistive,
the construction conforming to the standards of the
National Board of Fire Underwriters for fire resistive
buildings. The most approved fire resistive devices are
used, such as metal and wire glass windows, hollow
steel doors, extra strong partitions enclosmg shafts and
exits, and rolling steel shutters for openings facing haz-
ardous exposures. In addition, very complete fire
fighting appliances are provided in all buildings. Ad-
ditional methods and devices are adopted by the com-
panies in accordance with the recommendations of the
Underwriters and as the result of investigations carried
out by the headquarters' departments.

Standard equipment has been developed for both
outside construction forces and manufacturing forces
with a view to safety as well as efficiency. These de-
velopments include such things as linemen's safety
straps, standard goggles for protection from dust and
others for protection from heat, etc.

In the factories, standardized methods of safe-
guarding machines have been adopted that make it
simple to guard new equipment and furnish a criterion
for determining whether or not equipment is properly
guarded. Because these standards have been tried in
other installations, it can be confidently concluded that
guards made in accordance with their requirements
will not fail to afford maximum protection. Without
such standards it would be necessary to design guards
individually for each installation with the danger that
the use of untried designs might result in unforeseen
accident hazards. Standardized practices are followed
in the provision of ventilators and dust removing de-
vices, resulting in assured safety to the workers and
in reduced cost of design.

[148]

Standardization in the Bell System

A great deal of attention has been given to the de-
velopment of standard safety provisions for the outside
construction forces. In this standardization, groups
of construction employees directly involved play an
outstanding part. This procedure has the great ad-
vantage of developing the initiative and judgment of
the employees themselves who are, in the last analysis,
directly responsible for the effectiveness and use of any
safety standards adopted. The results of studies of
these groups with the co-operation of representatives of
the general departments are issued as Safety Codes
adopted as standard by each of the operating com-
panies.

In view of the importance of these standards to all
employees, various methods are used to insure the max-
imum degree of publicity. Illustrated articles are pub-
lished in the company magazines. Posters showing
safe methods of performing work or hazardous prac-
tices to be avoided are displayed each month by the
operating companies.

First aid activities have been standardized with re-
spect to the subject matter to be taught, the methods of
teaching, and the first aid equipment provided. All
companies use a textbook prepared by the American
Telephone and Telegraph Company in co-operation
with the American Red Cross. For the use of new em-
ployees who have not yet received formal instruction
in First Aid practices, a small handbook is available
containing terse directions for the treatment of the
more common injuries. Through further collaboration
with the Red Cross all instructors are thoroughly
trained in standard first aid practices. Two first aid
kits have been standardized, the larger for group use
and the smaller for individual use.

Standard provisions are followed throughout the
System with regard to the physical environment under
which the telephone operating forces perform their
duties with a view to providing the most healthful con-

[149]

Bell Telephone Quarterly

ditions. These standards relate to light, heat, ventila-
tion, rest rooms, lunch rooms, etc.

Co-operation with Outside Standardizing Bodies

Reference has been made from time to time in the
above discussion to co-operation with outside standard-
izing bodies. While a very large part of the standard-
izing work of the Bell System is of interest in connec-
tion with its own activities alone, some of this work is
of general interest and the System is co-operating in
these cases with the other organizations interested for
the purpose of developing standards of more general
application.

The extent of this co-operative work with other or-
ganizations is illustrated by the following items :

American Standards Association

The Bell System co-operates with the United States
Independent Telephone Association in the formation
of the telephone group which has three representatives
on the American Standards Association. The tele-
phone group is co-operating in twelve standardizing
projects under the auspices of this committee.

American Institute of Electrical Engineers

Two of the members of the Standards Committee
of the A. I. E. E. are from the Bell System which is
also co-operating in the work of three working com-
mittees.

American BailivaAj Association

Representatives of the Bell System are co-operating
in eleven committees engaged in standardization work
relating to communication and allied problems.

Institute of Radio Engineers

Three Bell System men are members of the Stand-
ards Committee of this organization.

[150]

Standardization in the Bell System

American Society for Testing Materia'!s

The Bell System has representatives on many of
their technical committees working on standard meth-
ods of tests and specifications, including those for non-
ferrous metals, insulating materials, magnetic mate-
rials, protective coatings, etc.

National Electric Light Association

The Bell System has formed with the N. E. L. A. a
joint general committee for the purpose of developing
mutually acceptable standards for the physical relations
between lines of power companies and telephone com-
panies when they are in proximity to each other, with
particular reference to safety, joint use of poles and
inductive co-ordination.

International Electrotechnical Commission

The Bell System has three representatives on the
United States National Committee of this Conmiission.

The above reference to some of the principal stand-
ardizing projects in which the Bell System is co-operat-
ing with other bodies is not at all inclusive but indicates
in a general way the scope of this work.

Conclusion

The above general outline of standardizing activities
in the Bell System is sufficient to indicate the outstand-
ing part which standardization has played in the build-
ing up of the Bell System. For many years, standard-
ization based upon not only the present needs of the
telephone system but also the best picture obtainable
of future trends, has been an integral part of the pro-
gram of development of telephone service. One type
of standardization increases both the possibility and the
advantages of another type so that in such an organiza-

[151]

Bell Telephone Quarterly

tion, standardization activities ramify through the en-
tire structure and touch every part of the work.

The total economies resulting from standardization,
of course, it would be impossible to closely estimate.
Standardization as indicated above, has been produc-
tive of many advantages in addition to economy. The
advantages from standardization may be summarized
as follows:

1. Standardization makes the best available for all.

2. Standardization reduces the cost because, when
all companies use the same things, they can be manu-
factured in the largest quantities and uniformity in out-
put contributes to economies in production.

3. Standardization reduces the cost of carrjdng
stocks of materials and the cost of maintenance and
repairs, because fewer parts have to be carried and
maintained.

4. Standardization reduces the cost of instruction
of new employees because there are fewer things with
which to get acquainted.

5. Standardization reduces accounting costs because
there are fewer types and sizes of materials to keep
track of.

6. Standardization minimizes complicated engineer-
ing and operating problems that might result from in-
tercommunication between widely divergent systems
and apparatus.

7. Standardization renders available large supplies
of materials and labor in emergencies.

8. Standardization greatly facilitates development
work, since improvement in, or development of, a new
article involves a co-ordination with a smaller number
of associated parts.

H. S. Osborne.

[152]

Abstracts of Technical Papers from Bell
System Sources

The Receiving System for Long-wave Transatlantic
Radio Tele phony, "^ by Austin Bailey, S. W. Dean, and
W. T. Wintringham. Transmission considerations and
practical limitations indicate that in the lower fre-
quency range, frequencies near 60 kc are best suited for
transatlantic radio-telephone transmission. A radio
receiving location in Maine gives a signal-to-noise ratio
improvement over a New York location equivalent to
increasing the power of the British transmitter about
50 times.

Various types of receiving antennas are briefly dis-
cussed. The wave antenna is selected as being most
suitable for long-wave radio telephony. The various
factors affecting wave antenna performance and meth-
ods for measuring the physical constants of wave an-
tennas are discussed in detail. High-frequency ground
conductivities determined from wave antenna measure-
ments are given. Combination of several antennas to
form arrays is found to be a desirable means of decreas-
ing interference. The use of a wave antenna array in
Maine decreases the received noise power by an addi-
tional 400 times. If the receiving were to be accom-
plished near New York using a loop antenna, we would
have to increase the power of the British transmitting
station 20,000 times to obtain the same signal-to-noise
ratio. Comparisons of calculated and observed direc-
tional diagrams of wave antennas and wave antenna ar-
rays are presented and discussed.

The transmission considerations governing the de-
sign of a radio receiver for commercial telephone re-
ception are outlined.

iProc. of I. R. E., December, 1928, pp. 1645-1705; Bell System Teclmical
Journal, April, 1929.

[153]

Bell Telephone Quarterly

Mathematical discussions of the wave antenna, an-
tenna arrays, quasitilt angle, and probability of simul-
taneous occurrence of telegraph interference are given
in the appendices.

Electrons and Quanta,^ by C. J. Davisson. The ex-
periments by the author and L. H. Germer, by G. P.
Thomson and by others from which the wave properties
of electrons are adduced are briefly described. The
agreement between the results of these experiments
and the prediction of L. de Broglie is pointed out. The
wave and corpuscular properties of electrons are com-
pared with the similar properties of light quanta.

Contemporary Advances in Physics, XVIII. The
Diffraction of Waves ly Crystals,^ by Karl K. Darrow.
This is an elementary introduction to the phenomena
of diffraction of waves by crystals, one of the most
striking and important discoveries of the last twenty
years of physics. These phenomena have proved that
X-rays and electrons are partly of the nature of waves,
and have supplied the best available methods of meas-
uring their wave-lengths ; while on the other hand, the
study of the diffraction-pattern of a crystalline sub-
stance makes it possible to determine the arrangement
and the interrelations of the atoms with a precision and
fullness heretofore unimagined, which promises and
has already yielded knowledge of the greatest value in
all the fields of science.

Purified Textile Insulation for Telephone Central
Office Wiring; by H. H. Glenn and E. B. Wood. This
paper outlines methods by which silk and cotton insula-
tion can be purified and improved. It gives the results

2 Bell System Technical Journal, April, 1929. Presented at the Michelson
Meeting of the Optical Society, Washington, D. C, November 1-3, 1928.

3 Bell System Technical Journal, April, 1929.

4 Bell System Technical Journal, April, 1929. Presented at the Winter
Convention of the A. I. E. E., New York, N. Y., Jan. 28-Feb. 1, 1919; Abridg-
ment published in A, I. E. E. Journal, February, 1929, p. 146.

[154]

Abstracts of Technical Papers

of tests on the insulation properties of these materials
before and after purification and explains the testing
procedures. One of the findings is that the purified
cotton may be substituted for ordinary commercial silk.

Effect of Signal Distortion on Morse Telegraph
Transmission Quality/ by J. Herman. In applying
telegraph transmission measuring apparatus to the de-
velopment and maintenance of telegraph circuits, it is
desirable to correlate quantitative measurements of
telegraph signal distortion with quality of telegraph
transmission. Accordingly, a series of tests has been
carried out in order to determine this relationship for
the case of manual operation using the American Morse
Code. These tests are described and the results, to-
gether with the conclusions reached, are given in sum-
marized form.

A Braun Tithe Hysteresigraph,^ by J. B. Johnson.
In this paper apparatus for observing hysteresis loops
of magnetic materials is described. It combines a
cathode ray oscillograph with a vacuum tube amplifier
and an electrical integrating circuit consisting of con-
denser and resistance. The device describes the B-H
curve for alternating magnetization in the frequency
range of five to perhaps several thousand periods per
second. The specimens may be either long strips or
closed rings. Alternating flux as low as one maxweU
may be readily observed.

The operation of the apparatus is analyzed so as to
account for the effects of finite time constants of the
amplifier and integrator, of conductance in the conden-
sers, of demagnetization by current in the search coil
and by the stray fields of coils and specimen, and of
eddy currents in the specimen.

6 Bell System Technical Journal, April, 1929.
«Bell System Technical Journal, April, 1929.

[ 155 ]

Bell Telephone Quarterly

Oscillographs for Recording Transient Phenomena.''
by W. A. Harrison. In this paper oscillographs de-
veloped for recording transient phenomena are de-
scribed which obtain automatically records of ampli-
tude, wave form, frequency, duration, and time of any
electrical disturbance for which they are adapted. Two
instruments are described for recording very short or
very long transients ; these may be used in combination.
At power frequencies satisfactory records may be made
on film or sensitized paper with a two-watt lamp. The
instruments and their performance are illustrated by
photographs and oscillograms.

Telephone Apparatus Springs.^ A Revietv of the
Principal Types and the Properties Desired of These
Springs, by J. R. Townsend. This article describes
the types of springs employed in telephone apparatus
and enumerates the engineering requirements both
from the standpoint of mechanics and the quality of
materials desired. The chemical and physical require-
ments of the spring materials are given. The impor-
tance of fatigue is emphasized and the endurance limit
is given for spring brass, nickel silver and phosphor
bronze.

The Predominating Influence of Moisture and Elec-
trolytic Material Upon Textiles as Insulators,^ by R.
R. Williams and E. J. Murphy. The insulating quali-
ties of textiles vary with the amount of moisture present
in them from hour to hour and are also strongly influ-
enced by the amount of electrolytic material (salts, etc.)
which the textiles contain. Electrolytic material may
be washed out producing a commercially realizable in-

7 Bell System Technical Journal, April, 1929. Presented at the Eegional
Meeting of the Middle Eastern District of the A. I. E, E., Cincinnati, Ohio,
March 20-22, 1929.

«Bell System Technical Journal, April, 1929. Presented at the Annual
Meeting, New York, N. Y., Dec. 3 to 7, 1928, of The American Society of
Mechanical Engineers, 29 W. 39th Street, New York, N. Y.

9 Bell System Technical Journal, April, 1929. Presented at the Winter
Convention of the A. I. E. E., Jan. 28-Feb. 1, 1929.

[156]

Abstracts of Technical Papers

crease in insulation resistance of the order of 50 times
the original value.

The resistance of the animal fibers, silk and wool,
is far greater for a given moisture content than that
of cotton or of cellulose acetate, a derivative of cotton.
It appears probable that the distribution of water as
well as the quantity is important and that the two
classes of fibers are characterized by different space pat-
terns according to which the water is distributed. It is
suggested that the space distribution patterns are as-
sociated with the colloidal structures of the materials
and in turn with their chemical classification as pro-
teins and celluloses respectively. Cellulose acetate ab-
sorbs little water as compared with cotton and is
correspondingly superior electrically. However its re-
sistance varies with moisture content in the same way
as that of cotton.

Scattering of Quanta with Diminution of Fre-
quency,'''' by Karl K. Darrow. In this article the au-
thor points out that certain phenomena of X-rays re-
cently reported were illustrations of the general process
of scattering of light with change in frequency, which
had just begun to attract attention omng to important
observations made by Raman and others with visible
and ultra-violet light. The content was amplified and
restated in Dr. Darrow 's article entitled " Contempo-
rary Advances in Physics, XYII— The Scattering of
Light with Change of Frequency, ' ' which appeared in
the January, 1929, issue of the Bell Systeyn Technical
Journal.

Dissociation of Molecules as Disclosed by Band-
Spectra^"- by Karl K. Darrow. This lecture was a con-
tribution to a Symposium on Atomic Structure of the
American Chemical Society. It is an elementary ac-
count of the way in which the band-spectra of molecular
gases are interpreted so as to disclose the laws and de-

10 Science, Vol. 68, November 16, 1938, pp. 488-490.

11 Chemical Eeviews, Vol. V, December, 1928, pp. 451-466.

[157]

Bell Telephone Quarterly

tails of the dissociation of their molecules into atoms,
a process of great scientific and some practical impor-
tance.

Using Inspection Data to Control Quality ^^ by H.
F. Dodge. This paper outlines a method of using in-
spection data to improve the technique of controlling
at economic levels the quality of product in the various
stages of manufacture. Essentially, the method rests
on the api^lication of statistical methods of analysis,
employing the viewpoint that every batch of manufac-
tured product constitutes a sample from a much larger
universe and as such is subject to random of chance va-
riations in quality. The variations in quality as ob-
served in inspection data may thus be the result of
either chance causes or of fundamental production
causes whose presence is undesirable.

Speech and Hearing^^ by Harvey Fletcher. This
book is concerned mainly with the results of Bell Sys-
tem research work on speech and hearing. These re-
sults, however, can be understood and appreciated bet-
ter when their relationship to similar work is shown.
Consequently, copious references to the experimental
results of other workers have been included. The ma-
terial is grouped under four headings: (1) Speech, (2)
Music and Noise, (3) Hearing, and (4) Perception of
Speech and Hearing.

The first part is concerned with the mechanism of
speaking, the classification of the fundamental English
speech sounds, and with the wave forms of such soimds.
It includes a description of various types of apparatus
which can be used for making permanent records of
speech waves and gives a large number of accurate wave
pictures of the speech sounds together with the power
contained in such waves.

12 Manufacturing Industries, Vol. XVI, November, 1928, pp. 517-519,
and December, 1928, pp. 613-615.

18 D. Van Nostrand Co., Inc., New York, 1929.

[ 158 ]

Abstracts of Technical Papers

In the second part similar data are given for musical
sounds and noise.

The third part begins with a discussion of a theory
of hearing which is proposed to explain the experi-
mental facts of audition. This is followed by a discus-
sion of the known facts of audition such as the limits
of audition, the minimum perceptible differences in
sound, masking effects, binaural effects, methods of
testing the acuity of hearing, etc. Along with this
discussion is given a description of the apparatus and
experimental methods used for determining these facts.

The fourth part is concerned with those phases of
the subject that involve personal judgment, that is, the
psychological element. A scale for measuring the
loudness and the pitch of complex sounds is defined.
Experimental data are given which show how these two
subjective quantities depend upon external physical
quantities. Methods of measuring the recognition of
speech sounds are described and experimental results
using such methods are given to show the effect of va-
rious t}^es of distortion upon the ability of persons
to recognize such distorted sounds.

Elementary Differential EquationSy^ by Thornton
C. Fry. In this book Dr. Fry has covered the field of
differential equations as usually offered in elementary
courses in universities and technical schools. The
mathematical ideas are first presented as mathematical
entities in themselves and not as the symbolic formula-
tion of physical concepts. With this accomplished,
these ideas are broadened and illustrated by live scien-
tific examples and problems, which are drawn from a
wide variety of fields. The inclusion of such technical
material does not presuppose a wider knowledge of
technical subjects than the reader can reasonably be
expected to possess, nor does it interfere with the clarity
of the mathematical presentation.

14 D. Van Nostrand Company, Inc., New York, 1929.

[ 159 ]
11

Bell Telephone Quarterly

Optical Conditions for Direct Scanning in Televi-
siony"" by Frank Gray and Herbert E. Ives. This paper
discusses the conditions for securing the maximum
amount of light in a photoelectric cell placed behind a
television scanning disc when an image is formed on the
disc by a lens. Eesults obtained with a large scanning
disc and a lens forming images of sunlit objects are de-
scribed.

A Came7^a for Making Parallax Panoramagrams^^
by Herbert E. Ives. This paper describes a camera for
making transparencies which when viewed through an
opaque line grating show stereoscopic relief through
a wide range of distances and angles. The essential
feature of the camera is a mechanical coupling by
means of which the camera lens, the sensitive plate and
grating, and the object photographed, are kept in line
as the camera moves from one side to the other of the
normal from the camera track to the object.

European Factory Methods and Equipment in the
Manufacture of Metals/^ by David Levinger. In this
paper the author outlines his observations of the metal-
working industries of Europe, based on a three months'
tour of eight countries during the summer of 1927, in
which seventy-five industrial establishments were vis-
ited in England, France, Germany, Belgium, Holland,
Italy, Austria and Switzerland.

Electrical Conduction in Textiles. Part I— The
Dependence of the Resistivity of Cotton, Silk and Wool
on Relative Humidity and Moisture Content,^^ by E.
J. Murphy and A. C. Walker. The data reported show
that the resistivity of cotton is about 10^^ times greater

15 Journal of the Optical Society of America and Eeview of Scientific In-
struments, Vol. 17, December, 1928, pp. 428-434.

18 Journal of the Optical Society of America and Eeview of Scientific In-
struments, Vol. 17, December, 1928, pp. 435-439.

17 Mining and Metallurgy, Vol. 9, November, 1928, pp. 483-486.

i« Journal of Physical Chemistry, Vol. 32, December, 1928, pp. 1761-1786.

[ 160 ]

Abstracts of Technical Papers

at 1 percent humidity than at 99 percent, that is an ex-
ponential function of relative humidity in the range 20-
80 percent and a power function of moisture content
over the whole range investigated. By means of the
equations expressing these relationships the resistance
of a cotton sample can be calculated for any moisture
content (or the relative humidities corresponding to it)
provided a measurement has been made at a single
moisture content. The curves for the logarithm of re-
sistance vs. relative humidity (or moisture content) for
samples of cotton containing different amounts of elec-
trolytic material are parallel, low electrolyte content
corresponding to high resistance. Similar but less ex-
tensive measurements w^ere made on silk and wool.
The results indicate that the conductivity of a textile
is practically completely determined by three factors,
the amount of absorbed water, its specific conductance
(as determined by the amount of electrolytic material
present in the textile) and its distribution.

The Effect of Gases on the Resistance of Granular
Carhon Contacts/^ by P. S. Olmstead. This paper de-
scribes a method whereby reproducible measurements of
the resistance of granular carbon contacts can be made.
The experimental arrangements were such that the re-
sistance could be measured as a function of gas pressure,
applied voltage, or time.

Note on the Determination of the Ionization in the
Upper Atmosphere/"* by J. C. Schelleng. This paper
describes a method of estimating the distribution of
ionization in the upper atmosphere, based upon meas-
urements of the effective height determined by inter-
ference or echo experiments. These two types of ex-
periment are shown to give identical results.

19 Journal of Physical Chemistry, Vol. 33, January, 1929, pp. 69-80,

20 Proceedings of the I. E. E., Vol. 16, November, 1928, pp. 1471-1476.

[161]

Bell Telephone Quarterly

Lead-Tin-Cadmium as a Suhstitute for Lead-Tin
Wiping Solder,^"- by Earle E. Schumacher and Edward
J. Basch. In this paper data are presented which show
the certain lead-tin-cadmium alloys may be advantage-
ously substituted as solders for lead-tin alloys. Data
are given showing the physical and chemical properties
of these alloys.

New Specifications for Ratv Materials^"^ by J. R.
Tovmsend. In this article the author points out that
the annual demand for new telephone apparatus by the
Bell System requii-es a steady flow of materials of the
proper quality and uniformity into its manufacturing
plants. To meet this demand, a new set of engineering
specifications has been inaugurated to control these raw
materials. A notable example of this specification
work is the preparation of Rockwell hardness and ten-
sile strength requirements for sheet brass, nickel silver
and phosphor bronze. The Western Electric Com-
pany, the Northern Electric Company and one of the
suppliers, the American Brass Company, co-operated
in this work. Rolling series were prepared covering aU
grades, thicknesses and tempers. The requirements
were based on the data fm-nished by producer and con-
sumer, and on experience over a long period with com-
mercial material.

21 Industrial and Engineering Chemistry, Vol. 21, January, 1929, pp. 16-19.

22 Instruments, Vol. 1, December, 1928, pp. 519-521.

[162]

Notes on Recent Occurrences

NEW TOLL AND LONG DISTANCE RATES

EFFECTIVE FEBRUARY 1 REPRESENT

THIRD REDUCTION IN 28 MONTHS

A REDUCTION in day rates for toll and long dis-
tance telephone calls was made effective February
1 which will represent a saving to the customers an-
nually of more than $5,000,000. This reduction, the
third in a little more than two years, cuts from $.05 to
$.25 from charges for station-to-station calls between
points from 130 to approximately 1,500 miles apart.
Middle distance rates received reductions as high as
13 per cent. An equivalent rate reduction was made
for person-to-person service. Evening and night rates
remain at their former level. For a call from New
York to Chicago the basic station-to-station day rate
was reduced from $3.25 to $3.00. A New York-Palm
Beach call or one between Denver and San Francisco
now costs $3.75 instead of $4. Separate rates for ap-
pointment and messenger service under the new sched-
ule are eliminated, these services being offered at reg-
ular person-to-person rates. The extra charges above
person-to-person rates previously made for appoint-
ment and messenger calls are eliminated for all long
distance calls so that these calls are now charged at
person-to-person rates.

A little more than a year ago. President Walter S.
Gifford addressed the National Association of Railroad
and Utilities Commissioners, at which time he defined
the fimdamental policy of the Bell System as that of
furnishing the best possible service at the lowest cost
consistent with financial safety. This is the second
substantial saving to be offered its customers by the
Bell System since that address, and is further concrete

[163]

Bell Telephone Quarterly

evidence of the way in which the policy operates. The
previous rate reduction, effective December 1, 1927,
which immediately followed this definition of policy
and saved the telephone users $1,500,000 in 1928 alone,
largely concerned calls to more distant points. An-
other such rate reduction, representing an estimated
saving to the telephone users of $3,000,000, went into
effect on October 1, 1926.

The increasing reliance of the American public upon
telephone circuits between f ar-flimg points as a business
and social necessity has combined with further im-
proved devices and methods developed by the Bell Sys-
tem, to effect the economies that make possible this
latest lowering of rates.

GENERAL SALES CONFERENCE

THE General Sales Supervisors of the Bell System
met in New York City for the first System Sales
Conference January 28 to February 2, inclusive. The
Conference was attended by 48 representatives from
the Associated Companies, the Long Lines Department
of the American Company and the Bell Telephone
Company of Canada and also by various officials and
members of the Headquarters Staff in New York. H.
C. Lauderback, Sales and Development Engineer of
the A. T. and T. Co., presided throughout the Confer-
ence.

The work of the Conference was divided into five
general groups :

1. Exchange Sales.

2. Toll Sales.

3. Organization and Personnel Problems.

4. Sales Information and Advertising.

5. Customer Relations.

The various subjects were presented in papers pre-
pared by both Associated Company and A. T. and T.
Company representatives, with the Associated Com-

[164]

Notes on Recent Occurrences

pany representatives presenting the greater number of
subjects.

Particular stress was laid upon the importance of
maintaining sales work in its proper relationship to
overall telephone operations. Our motive should be
not to sell all of the service that can be sold— but to
sell only the service which, in the judgment of the man-
agement, it is good business to sell at the time, consid-
ering all of the circumstances.

It was developed that the formulation of sales plans
having definitely in mind the particular phases of op-
eration which each type of sales activity was intended
to improve, should be helpful in securing the best pos-
sible direction of sales effort. Accordingly the discus-
sion of Exchange Sales Planning was directed and
results information presented under the following head-
ings: Planning to Improve Subscriber Service, Plan-
ning to Utilize Idle or Spare Plant, Planning to Utilize
Eate Schedules most Effectively, Planning to Promote
a Greater Use of the Service. Discussion of Exchange
Sales Activities was divided into such subjects as Par-
ticipation of aU Departments in Sales Work, Stimu-
lated Sales in the Business Office, Obtaining New
Subscribers, Regrading Activities, Sale of Auxiliary
Services and By-Product Service, Sale of Public and
Semi-Public Services, Sales to Promote Convenient
Telephone Service in Homes and Commercial Service
Activities. The presentation of the general subject of
Toll Sales Planning was followed by discussions of
Toll Sales Activities including Sales to Promote a
Greater Use of Toll Service among Business Subscrib-
ers, Sales to Promote a Greater Use among Residence
Subscribers and the Key Town Plan of Selling by
Telephone.

President J. S. McCulloh of the New York Tele-
phone Company welcomed the conference to the Head-
quarters' Building of the New York Company at 140
West Street, where the conference was held.

[ 165 ]

Bell Telephone Quarterly

Vice President A. W. Page addressed the conferees
on the close relationship existing between sales activ-
ities and the work of the Information Departments.
R. H. Burcher discussed phases of plant operation af-
fecting sales activities. H. H. Carter, General Com-
mercial Manager, Long Lines Department, outlined the
sales plans and activities of that Department. Im-
provements in traffic operation and their effect on ex-
change and toll development as indicated in past per-
formance were discussed by A. J. Allen. Equipment
problems, including the provision of new instnmien-
talities, were presented by W. H. Harrison.

L. B. Wilson was present at all sessions of the Con-
ference, and addressed the Conference on various
phases of commercial operation. C. Wallace, H. H.
Shearer, and Z. Z. Hugus presented the rate, directory,
and employee training aspects of sales activities. Visi-
tors to the conference included W. J. O 'Connor, T. T.
Cook, H. E. Darling of the New England Company,
Southern Area, M. B. Downing, A. D. Welch, W. A.
Kietzman, and K. S. McHugh of the New York Tele-
phone Company, F. M. McEniry, Wisconsin Telephone
Company, and F. M. Hoag of the Southwestern Bell
Telephone Company.

Emphasis was given throughout the Conference to
the Customer Relations Aspects of Sales Activities and
the general conception of Sales Activities as a means
of rounding out and perfecting the communication
facilities of customers.

CONFERENCE OF BELL SYSTEM EDITORS

A CONFERENCE of editors of the employee mag-
azines published by BeU System operating com-
panies, the Western Electric Company and the Bell
Telephone Laboratories was held at 195 Broadway,
February 25th to 28th, inclusive. It was the first sep-
arate conference of the editors as a group, their pre-

[166]

Notes on Recent Occurrences

vious meetings having been as members of general pub-
licity conferences. The general theme of the discus-
sion was the function of the System magazines in stim-
ulating and maintaining the esprit de corps of tele-
phone men and women. Addresses were made during
the conference by President W. S. Gifford, and Vice
Presidents A. W. Page, E. K. Hall and B. Gherardi.

TRANSATLANTIC SERVICE TO LUXEMBURG

AMERICAN telephone users were enabled to reach
directly one of the smallest independent Euro-
pean states on and after March 1, when transatlantic
telephone service was extended to include the City of
Ijuxemburg, capital of the Grand Duchy of Luxem-
burg. The rate for a telephone conversation from
New York is $48.00 for the first three minutes and
$16.00 for each additional minute.

The Duchy is smaller than Rhode Island. It has a
population of 270,000, served by 9,000 telephones. The
City of Luxemburg numbers 50,000 inhabitants.

BELL LINES USED FOR INAUGURATION
BROADCASTING AND TELEPHOTOGRAPIIS

THE Bell System had an important part to play on
March 4 during the inauguration of President
Hoover and Vice-President Curtis. More than 30,000
miles of telephone program circuit carried the inaug-
ural ceremonies to 118 radio stations in all parts of the
country, making the occasion the largest chain broad-
cast which has ever occurred. By means of a number
of pick-up circuits furnished by local loops from the
various points where events connected with the inaugu-
ration took place, complete descriptions of all the oc-
currences of the day were supplied to the listening pub-
lic. During the lunch hour in Washington, President
Hoover listened to a program of celebration from his
home town, Palo Alto, California, brought east over

[167]

Bell Telephone Quarterly

one of the transcontinental circuits. Pictures of the
inauguration were sent to newspapers throughout the
country through a special telephotograph station es-
tablished temporarily at Washington.

Eadio Broadcasting Networks

Microphones were located at the White House, the
Senate Chamber, the east steps of the Capitol, the Peace
Monument, on Pennsylvania Avenue near the Capitol,
the Treasury Building, and at other points. The
broadcasting companies also had facilities in aircraft
above the route of the inaugural parade and sent out
the reports of observers overhead. The broadcast of
the vice-presidential ceremonies in the Senate Chamber
was of special interest since this was the first time this
has taken place, a regulation previously preventing the
placing of wires in the Senate Chamber. Local public
address systems were in operation at the east steps of
the Capitol and also at the reviewing stand at the White
House, and enabled great audiences to hear the proceed-
ings.

All of the radio stations regularly on broadcasting
networks were furnished service on this occasion along
with a number of special additions. The larger broad-
casting companies had coast-to-coast circuits, and their
programs were available to practically every radio lis-
tener in the country. The exercises were also heard
by many listeners in distant countries through high
frequency short-wave transmission from various sta-
tions. It was reported that one of these transmissions
was successfully received in the Hawaiian Islands and
re-transmitted over the ordinary broadcasting facilities.

Telephotograph Fachjties

A telephotograph station was temporarily installed
in Washington to handle pictures of the inauguration.
Beginning the evening before the ceremony, this office,

[168]

Notes on Recent Occurrences

located in the quarters of the Chesapeake and Potomac
Telephone Company, transmitted thirty-two photo-
graphs, of which about half were sent to all eight sta-
tions on the telephotograph circuit, namely: New
York, Boston, Cleveland, Chicago, St. Louis, Los An-
geles, San Francisco and Atlanta. The views were
then sent out by messenger, airplane, etc., so that news
agencies and newspapers all over the United States
were able to utilize these first pictures of the change of
administrations. A force of men from the Long Lines
telephotograph, commercial and plant departments
took charge of the installation.

Commenting on the telephotograph service in con-
nection with the inauguration, the Neiv York Evening
Post said editorially:

"It was an interesting fact that the telephotographs served
to the Post by Pacific and Atlantic Photos, Inc., came to this
office with the speed and precision of the news of the day. They
were in this office ahnost as quickly as the written words sent
over the telegraph wires."

Surpasses Previous Inaugurations

The completeness of the radio description, the many
millions of listeners who heard the ceremonies, and the
transmission of pictures by wire to distant cities, make
a vivid contrast with 1917 when the late President
Wilson was inaugurated the second time. On this oc-
casion there was neither a public address system nor
radio broadcasting. The inauguration of President
Harding in 1921 was the first at which the audience
had the benefit of a public address system. In 1925
twenty radio stations transmitted the inaugural cere-
monies and 20,000,000 persons, it is estimated, heard
Calvin Coolidge take the oath at the beginning of his
four-year term. Estimates of the number of listeners
to the Hoover inauguration run far higher.

[169]

Bell Telephone Quarterly

ANNUAL MEETING OF STOCKHOLDERS

At the annual election of directors by the stock-
holders of the American Telephone and Telegraph
Company on March 26, Charles Francis Adams, now
Secretary of the Navy, and Edwin Farnham Greene re-
tired from the Board. To fill these vacancies, and the
vacancy caused by the death of John I. Waterbury, the
stockholders added to the Board Thomas Nelson Per-
kins of Boston, Owen J. Roberts of Philadelphia, and
Myron C. Taylor of New York. The remaining six-
teen directors were reelected.

The stockholders voted in favor of an increase in
the authorized capital stock from $1,500,000,000 to $2,-
000,000,000. There were 8,616,201 shares voted in
favor and 8 shares voted against.

NEW DIRECTORS OF THE A. T ife T. CO.

AT its meeting on February 20th, the board of di-
rectors of the American Telephone and Telegraph
Company elected John W. Davis a director to fill the
vacancy caused by the death of Charles E. Hubbard.
Mr. Davis, who was Democratic nominee for President
in 1924, is a member of the law firm of Davis, Polk,
Wardwell, Gardiner & Reed, of New York City. He
is also a director of the National Bank of Conmierce
and a trustee of the Mutual Life Insurance Company.
Thomas Nelson Perkins, who was elected a director
on March 26, is a member of the Boston law firm of
Ropes, Gray, Boyden and Perkins. He is vice presi-
dent of the Railway and Light Securities Company, a
director of the Merrimac Chemical Company, director
and chairman of the Executive Committee of the Puget
Sound Power and Light Company and a director and
member of the Executive Committee of the Boston and
Maine Railroad. During the World War he was a
member of the Priorities Committee, chief counsel for
the War Industries Board, member of the American

[170]

Notes on Recent Occurrences

Commission to the Inter-Allied War Conference at
Paris, assistant to Secretary of War and assistant di-
rector of mimitions. He is a fellow of Harvard Col-
lege.

Owen J. Eoberts, who was also elected a director on
March 26, is engaged in the practice of law at Phila-
delphia, as a member of the firm of Roberts and Mont-
gomery. He is a director of the Bell Telephone Com-
pany of Pennsylvania, the Real Estate Title Insurance
and Trust Company, the Franklin Fire Insurance
Company and the Equitable Life Assurance Society of
the United States. During the w^ar Mr. Roberts was
appointed special deputy attorney-general to represent
the United States Government in the prosecution of
certain cases and he also represented the United States
Housing Corporation in Philadelphia.

The third new director elected on March 26 is My-
ron C. Taylor, who is chairman of the Finance Com-
mittee of the United States Steel Corporation, presi-
dent and director of Myron Taylor and Company, Inc.,
and director of the First National Bank of New York,
the New York Central Railroad Company, and the Le-
high and Wilkes-Barre Corporation. He is a director
and member of the Finance Committee of the Atchison,
Topeka and Santa Fe Railway Company and a trustee
and member of the Finance Committee of the Mutual
Life Insurance Company of New York.

[171]

Organization Changes

Chesapeake and Potomac Telephone Company

M. D. Sedam elected Vice-President.

Entered employ of the Bell System as Directory
Clerk, Central Union Telephone Company, Indianap-
olis, 1903; Service Inspector, February, 1904; Chief
Clerk and Service Manager, May, 1904; Chief Clerk
and Manager, December, 1904; Toll Chief Operator,
1904; District Chief Operator, 1905; Special Agent,
Pacific Telephone and Telegraph Company, San Fran-
cisco, 1907 ; City Chief Operator, 1907 ; Division Super-
intendent of Traffic, Los Angeles, August, 1908 ; Traffic
Superintendent, Southern California Telephone Com-
pany, May, 1917; Division Superintendent of Traffic,
Pacific Telephone and Telegraph Company, San Fran-
cisco, October, 1919 ; General Superintendent of Traffic,
Chesapeake and Potomac Telephone Company, Wash-
ington, D. C, February, 1922 ; General Traffic Manager,
June, 1924; General Manager, May, 1927; Vice-Pres-
ident, February, 1929.

Pacific Telephone and Telegraph Coi^ipany

R. H. Harwich appointed General Plant Manager,
Southern California Area.

Entered employ of the Bell System as Assistant
Engineer, New York Telephone Company, Brooldyn,
N. Y., April 8, 1911 ; Engineer, June, 1912 ; Supervising
Foreman, May, 1915; Engineer, June, 1915; District
Plant Engineer, August, 1916; Engineer, American
Telephone and Telegraph Company, New York City,
September, 1920; District Plant Engineer, New York
Telephone Company, Brooklyn, December, 1922; Out-
side Plant Engineer, Southern California Telephone
Company, Los Angeles, August, 1924; Division Plant

[172]

Organization Changes

Manager, February, 1928; General Plant Manager,
Pacific Telephone and Telegraph Company, Southern
California Area, January, 1929.

I. F. Dix appointed Assistant to General Manager,
Oregon-Washington-Idaho Area.

Entered employ of the Bell System as Engineer,
New York T. & T. Co., Newark, N. J., 1904; District
Engineer, 1907; Division Plant Chief, Pacific Tele-
phone and Telegraph Company, Los Angeles, 1909 ; Di-
vision Plant Engineer, 1911 ; Plant Engineer, Southern
California Telephone Company, May, 1917; Plant
Superintendent, January, 1919; General Plant Man-
ager, January, 1926; Assistant to General Manager,
Pacific Telephone and Telegraph Company, Oregon-
Washington-Idaho Ai'ea, January, 1929.

Bell Telephone Laboeatories, Inc.
H. P. Charlesivorth elected Vice-President.

Entered employ of the Bell System engaging in cir-
cuit development engineering, American Telephone and
Telegraph Company, Boston, 1905; ToU Traffic Engi-
neering, New York City, 1907; Engineer, 1909; Plant
Engineer, April, 1920; Vice-President, Bell Telephone
Laboratories, Inc., December 24, 1928.

Bell Telephone Securities Company
Clinton S. Van Cise elected Vice-President.

Entered employ of the Bell System as Bookkeeper,
New York Telephone Company, New York City, July,
1914; Clerk, April, 1916; Accountant, March, 1919;
Supervising Accountant, April, 1919 ; Clerk, American
Telephone and Telegraph Company, January, 1921;
Methods, Financial Department, May, 1921 ; Assistant
to Treasurer, January, 1923; Assistant Treasurer,
March, 1923 ; Vice-President, Bell Telephone Securities
Company, December, 1928.

[ 173 ]

Bell Telephone Quarterly

A MEDIUM OF SUGGESTION
AND A RECORD OF PROGRESS

Published quarterly for the Bell System by the American Telephone
and Telegraph Company

Subscription, $1.50 per year, in United State* and Canada; tingle copiet, SO cenU

Address all communications to

INFORMATION DEPARTMENT

AMERICAN TELEPHONE AND TELEGRAPH COMPANY

195 Broadway, New York

Vol. VIII JULY, 1929 No. 3

Extension of Telephone Service to
Ships at Sea

THE project of extending telephone service to
ships at sea, upon which experiments were con-
ducted some 3^ears ago, is being actively taken
up anew. Arrangements are being made to construct
shore receiving and transmitting stations somewhere
in New Jersey, suitable for handling a general service
along the Atlantic steamship lanes, and for tlie installa-
tion of a model transmitter and receiver aboard the S.
S. " Leviathan." Pending the completion of the com-
mercial shore transmitting station, the initial engineer-
ing tests will be carried out from the Deal Beach ex-
perimental station.

What is believed to have been the first instance of
two-way radiote ephony, through the telephone wire
network to a vessel at sea, took place as far back as
1916. On that occasion the Secretary of the Navy in
Washington and the captain of the U. S. S. '' New
Hampshire " carried on a two-way conversation over
land lines and radio connections. This trial was con-
ducted by engineers of the Bell System in cooperation
with the Navy Department as a part of the communica-

[175]
12

Bell Telephone Quarterly

tions preparedness work which the System carried on
at that time with the Government.

The experience thus gained was applied when the
United States entered the World War to the develop-
ment of telephone sets for intercommunication between
ships. Sets of this type were manufactured by the
Western Electric Company. A considerable number
of installations were made on submarine chasers and
other installations were made on ships of various types.

An extensive experimental investigation underlying
the development of ship-to-shore telephony for general
public service was undertaken during the years 19.19
to 1922. At that time there was built the station at
Deal Beach, IST. J., which has since been used for experi-
mental work and for transatlantic short-wave teleph-
ony. Connections were made with several coastal and
transatlantic ships. In addition to extensive engineer-
ing measurements and tests, numerous calls were made
between these ships and various points in the land line
system. A number of demonstrations were made both
to telephone officials and to others of the physical feasi-
bility of connecting ships at sea into the telephone net-
work and thereby permitting telephone communication
between a person on shipboard and practically any tele-
phone subscriber on land.

Although these telephone trials were successful from
the technical standpoint, the development was not car-
ried to the point of the establishment of service to the
public because commercial conditions, including the ad-
verse economic conditions which prevailed in the ship-
ping world, did not appear to justify at that time the
establishment of a new service of this kind.

Since that time, however, a great increase has oc-
curred in steamship travel and in the use by the public
of long-distance telephone facilities. The possibilities
of using short waves for long-distance communication
have been demonstrated and transatlantic short-wave
circuits established. The time therefore, now appears

[176]

Telephone Service to SJiips at Sea

to be opportune for undertaking anew the project of
sliip-to-shore telephone service.

Since the time of the earlier experiments, the tech-
nical picture has changed materially. The frequencies
of about 1000 kilocycles, which were used in these ear-
lier trials, were soon thereafter devoted to broadcasting
services. Lower frequencies than these are occupied
quite comi^letely by telegraph services of various kinds
and do not afford the necessary opportunity for ship-
to-shore telephone development. It is, therefore, to the
high-frequency (short-wave) end of the radio spectrum
that we must now look for the development of this new
service. The frequencies involved are those higher
than 3000 kilocycles, corresponding to wave lengths of
less than 100 meters. These frequencies are quite dif-
ferent in their transmission characteristics from those
employed in the earlier work, and require a different
technique. They present disadvantages due to fading,
but they do have certain advantages in reaching ships
at great distances.

One of the important factors in ship-to-shore com-
munication is that of obtaining assignments to the nec-
essary frequencies. In our present undertaking, for
example, an assignment of three sets of frequencies will
be required at the outset for the frequency used will de-
pend upon the distance of the vessel and the time of
day. Only a few years ago no use was being made of
these higher frequencies, but important results obtained
with them during the last few years have led to a large
demand for the assignment of channels in this region
of the spectrum.

In view of the fact that radio telegraph service has
for so long been given to ships at sea as to be now rather
commonplace, the question of why there should be prob-
lems in radio telephony may well be raised. The an-
swer is, as all telephone people will realize, that teleph-
ony is inherently a more difficult problem technically,
and requires the meeting of higher standards of trans-

[177]

Bell Telephone Quarterly

mission than ordinary hand telegraphy. The differ-
ence between the two is especially pronounced in the
case of service to ships where it may not always be pos-
sible to render the same quality of service as in over-
land wire service. Furthermore, the telegraph trans-
mission can be degraded much further without serious
sacrifice in its usefulness. Also, the telephone user
cannot be expected to tolerate the same amount of in-
terference and general variability of reception and de-
lay as will skilled telegraph operators.

Because of this greater ease with which telegraphy
can utilize the radio medium, it seems apparent that
it will always have a place in the field of marine com-
munication. Telephony, however, should contribute
greatly toward overcoming the isolation of ocean travel
by adding the entirely new factor of a continued per-
sonal contact with shore.

A-ship-to-shore telephone service presents also a
number of problems which are not present in point-to-
point radiotelephony. These problems are mostty
bound up with the fact that on shipboard the radio
transmitting equipment and the receiving apparatus
must be located in close proximitj^ to each other, while
on land they may be separated as illustrated by the
transatlantic stations. Interference with reception on
the part of the radiotelephone transmitter will be obvi-
ated in the proposed trial installation by means of voice-
operated relays which will actuate the transmitter only
at such times as the subscriber on shipboard is actually
speaking.

Furthermore, on board vessels such as the '' Levia-
than," the telegraph traffic is practically continuous
and avoidance of radio interference between the two
services is probably the most difficult problem w^hich
will come up for solution. On large vessels the tele-
phone and telegraph services must obviously be carried
out simultaneously. This will entail the development
of highly selective apparatus, not only for the telephone

[178]

Telephone Service to Ships at Sea

equipment, but also for the radiotelegraph equipment
associated with it, and will require cooperation with
the agency operating the telegraph equipment. On the
first few vessels to be equipped with radiotelephony,
this interference problem will be met by specific engi-
neering for the vessel involved, but the whole matter
of the relationship between the telephone and the tele-
graph services will need to be worked out more com-
l)letely as telephone service comes into more general
use.

Another shipboard problem is that of interference
with the radiotelephone reception from disturbances
arising in the electrical equipment of the ship. It is,
in general, impossible to avoid all troubles of this kind
and special shielding, both of the receiving apparatus
and some of the machinery, will need to be resorted to
in order to keep this trouble down to a minimiun. An
investigation of this problem was made on a number
of vessels during 1925-27, in which the general receiv-
ing conditions at short wave lengths were studied.
Quantitative measvirements were also made of short-
wave transmission from the Deal Beach station during
the course of the vessels to and from New York.

The shipboard receiving conditions make desirable
the transmission from the shore of about as much
power as is used in the short-wave transatlantic sys-
tem. It is, therefore, planned to install in the shore
station the same equipment as is used at the Lawrence-
ville transatlantic station. In the case of transatlantic
vessels the course is along fairly well defined routes,
which will make possible the use of directive antennas
for transmitting to them. Antennas of this type are
of very great value, since they concentrate the energy
of the radio waves in the direction required and, hence,
serve the twofold purpose of producing a greater signal
at the receiving station and of reducing interference in
unwanted directions. On account of the width of the
transatlantic lane, however, the concentration of the

[179]

Bell Telephone Quarterly

transmitted energy by this means cannot be carried out
to the same degree as in the transatlantic service, where
a definite point is aimed at, but, nevertheless, substan-
tial increase in the signal strength can be expected. At
the shore receiving station directive antennas will also
be used and equipment similar to that used in the Net-
cong transatlantic station will be employed. Supple-
mentary antenna arrangements may be necessary for
the handling of the coastmse service.

The apparatus on board the " Leviathan," while ex-
perimental in character, will, nevertheless, embody all
the features necessary for commercial operation and
it is anticipated that at the end of the experimental
period it will be suitable for extended comaiercial use.
The transmitter used on the ship, however, does not
need to be as powerful as that of the connecting land
stations, since receiving conditions on land are more
favorable than on shipboard.

The actual carrying out of the ship program will
involve the following steps: The determination of the
actual receiving conditions on the *' Leviathan "; the
installation and adjustment of the equipment to those
local conditions ; the making of engineering tests on the
overall system; and the extension of these tests to a
commercial trial of service from telephone subscribers
to ships at sea.

Lloyd Espenschied,

William Wilson.

[180]

Telephone Typewriters and A^uxiliary
Arrangements

PRINTING over telegraph circuits is an old art,
inventors having devised such arrangements pre-
vious to the invention of the telephone. Over
50 years ago the manufacturing organization, which
grew into the Western Electric Company, constructed
and sold printing telegraph machines under the patents
of Elisha Gray. It was not until about 1909, however,
that systematic printing telegraph development work
was started by Bell System engineers, primarily to
meet the requirements of telegraph message service as
they were understood at that time. This work led to
a multiplex system of four channels working in each
direction at 52 words per minute per channel over a
single wire, a system which included a mechanism for
printing a single copy on a roll of paper of standard
page width. A printer operating directly from a key-
board for working over short circuits was also devel-
oped.

Further consideration of the requirements of tele-
graph service and especially those of the American
Telephone and Telegraph Company, led to the develop-
ment of an intercommunicating system capable of op-
erating over composited telephone circuits and having
sending keyboards resembling typewriter keyboards,
and to the development of new types of receiving ma-
chines, one designed for printing on a page and capable
of making as many copies as can be made on a type-
writer, and the other a machine for printing on a nar-
row strip of paper or tape. The intercommunicating
system was so arranged that any sending station in a
network could obtain control of the circuit at will. In
other words, a '* conversational " path between print-
ing telegraph instruments was provided which was
analogous to that provided by telephony and printer
operators could carry on *' conversations " between

[181]

Bell TelepJione Quarterly

stations connected to the same network with facility.
The name '' telephone typewriter " service, therefore,
seemed very appropriate.

Of the present machines available for Bell System
telephone typewriter service, three may be mentioned
in particular. These instruments illustrated in Figs.
1, 2 and 3 are as follows :

1. A tape telephone typewriter which prints on a nar-

row strip of paper or tape.

2. A page telephone typewriter which prints on a wide

sheet of paper (usuall)^ 8^4 in. wide).

3. An automatic sending machine which provides for

sending from a perforated strip which acts as
a storage medium for the message.

The machines illustrated by Figs. 1 and 2 can be ar-
ranged for receiving only by omitting the sending key-
boards.

The tape machine is very popular for a communica-
tion service in which the individual communications are
short, do not require more than one copy and need not
be kept on file for any great length of time. However,
if so desired, the tape can be pasted on a blank to give
the appearance of a page message. The page machine
is found to be very satisfactory for longer communica-
tions which are kept for future reference, for making
multiple copies, and in some cases for handling special
forms. From the point of view of handling telegraph
traffic the page system is not quite so efficient, because
the signals controlling the operations of feeding the
paper and of returning the carriage to the beginning of
each line have to be transmitted over the circuit by the
sending operator. These operations are not required
with the tape printer.

Machines for sending from a perforated strip find
their use where a large volume of traffic is to be handled
as in press offices. The message m the perforated strip
form will pass through the sending mechanism or trans-
mitter at a regular rate, say 360 characters per minute

[182]

Fig. 1. Tape Telephone Typewriter

Fig.

Page Tek'plione Typewriter

Fig. 3. Automatic Sending Machine

Telephone Typeivr iters

but the operator in preparing the message in this form
for transmittal can exceed this speed and, therefore,
have a freedom of working which is found to be quite
desirable. This uniform speed of transmitting over
the circuit corresponds with the fastest working of most
operators who are employed to prepare the perforated
strip.

Fig. 4 illustrates the arrangement of our present
standard keyboard, together with a representation of
the code combinations for each character as they ap-
pear in the perforated strip used with automatic send-

FiG. 4. Telephone Typewriter Keyboard and Corresponding Code
Combinations

ing machines. The code always contains five elements
per character equal with respect to time and repre-
sented in the electrical circuit by signaling impulses
transmitted successively by a distributor. Differen-
tiation between characters is obtained by giving each
of these impulses either one or the other of two charac-
teristics, and thus we have two to the fifth power or 32
possible code combinations, enabling the 26 letters of
the alphabet to be selected and necessary machine func-
tions to be controlled such as the shift operation for
printing upper case characters, carriage return, etc.

[183]

Bell Telephone Quarterly

A very desirable feature of this code is the fact that
the same number of equal impulses is employed in
selecting each character. This simplifies selecting
mechanisms and makes telegraph repeating arrange-
ments practicable for regenerating the telegraph im-

TOTAL TELEFKCNE TYPEWRIIEB MACHINES

DELIVEPiCD TO THE BELL SYSTEM
AS OF DECElffiER 31 (192? ESTILLiiTED)

-16

•14

•12

Fig. 5

pulses. Thus, with a long circuit or a complicated net-
work having many sending and receiving points we are
able to give a satisfactory service since we can insert
one of these regenerative repeaters at some strategic
point and bring the telegraphic impulses, which may
become distorted due to line conditions, back to the
original form which they had at the sending station.

Though the code illustrated above has five equal suc-
cessive pulses per character and enables any one of 32
different conditions to be selected, it is necessary to add
two more pulses to this code if to and fro or intercom-

[184]

Telephone Typewriters

municating service between stations on a network is to
be given. One impulse added at the beginning of the
selecting group and known as the '' start " impulse in-
itiates a timed movement at each receiving station;
another impulse of opposite polarity is then necessary
at the end of the selecting group to terminate this move-

TOTAL TELEPHONE TYPEWRITER STATIONS

IN THE BELL SYSTEM
AS OF DECEL1BER,31 (1929 ESTIMATED)!

6h

4'o

CM +»
OX (0

Fig. 6

ment. This last impulse is known as the ** stop " im-
pulse and together they have caused the system to be
universally kown as the '* start-stop " system.

The circuits used in networks required for telephone
typewriter service may be obtained by the various ar-
rangements which have been devised for securing tele-
graph channels from telephone circuits, such as sim-
plexing, compositing and carrier arrangements.

The demand for telephone typewriter service on the
part of ]Dress associations, business houses and others
during the past few years has exceeded our earlier es-
timates. This rapid expansion is illustrated by Fig.

[185]

Bell Telephone Qua7'terly

5 which shows the number of machines delivered to the
Bell System during the past few years together with an
estimate for this year. It is to be noted that in 1929,
the estimate shows purchases of considerably more than
twice the nmnber of machines purchased in 1928. Fig.

LONG LINES TELEPHONE TYPEWRITER SERVICE

CIRCUIT MILEAGE

AS OF DEC. 31

300

250

200

100

50

Fig. 7

6 illustrates the expansion in the number of stations in
the system over a similar period of time but since two
machines are generally installed at stations on impor-
tant long-line circuits in order to insure uninterrupted
service, the number of stations is considerably less than
the total nmnber of machines added.

The telephone tj^^pewriter method of obtaining in-
teroffice communication with its speed, flexibility, and
accuracy has found extensiA^e application in newspaper
offices, banks, brokerage offices, factories and businesses
of many kinds throughout the country as well as in our
own official business. On May 31, 1929, approximately
396,000 circuit miles of telephone typewTiter service
were handled under contracts held by the Long Lines
Department alone and in addition over 30,000 miles was
in use by the American Telephone and Telegraph Com-

[186]

Telephone Typewriters

pany for its own business. The growth of the contract
mileage is indicated in Fig. 7, and Fig. 8 ilhistrates a
division of the Long Lines' telephone typewriter serv-
ice as of March 31, 1929, into the three classes : press,
broker and general commercial applications.

TELEPHOIIE TYPEWRiraR STATIOHS
A. T. 4 T. CO. CONTRACTS - 2266 STATIONS., MABCH 31, 1929

Press

Bankers, Brokers, etc.

General Commercial Business

10 20 30 40 50 60 70

Per Cent

Fig. 8

Some of the applications of this service will now be
described.

Press Service

Thus far the most extensive use of telephone type-
writer service has been for the press. Practically all
of the large press associations handle a large part of
their telegraphic traffic by this service over Bell Sys-
tem circuits. The mileage of circuit used for the press
at this time is about 250,000. Approximately 3500 ma-
chines are used.

An interesting recent development in connection
with the introduction of this service has been the u^e of
tape machines to handle stock exchange reports given
out by press associations. It was formerly thought
that this traffic would always have to be handled by
telegraph operators who, using abbreviations, would
send out the information so that the receiving operators

[ 187 ]

Bell Telephone Quarterly

could manually insert price figures in the proper places
on forms. It is now found that the tape telephone
typewriter instrument is fast, accurate and quite satis-
factory, since the short pieces of tape on which prices
are printed by the receiving machines can be pasted on
the market forms ready for the linotype operators.

Fig. 9 is a view of a typical press association tele-
graph office.

BrOICER SER\^CE

It is only recently that conditions were such that a
satisfactory telephone typewriter service could be given
to brokers, but the response has been such that it is ex-
pected that a substantial part of the circuit mileage re-
quired for this class of our customers will be handled
by telephone typewriter instruments in a comparatively
short time. Since the traffic consists largely of short

1NY

BUY 400 HLN 35e ACCT 231.. .400 AT 3?b.»« [

2NY

BUY 85 SHARES GOODYEAR TIRE 1991 ACCT 67. ..85 AT 1993..

3NY

SELL 100 INGERSOLL RAND 139 ACCT 457. ..100 AT 139. ..|

Fig. 10. Typical Broker's Orders.

statements, requests for prices, and other market in-
formation, the tape printer has been foimd to be very
satisfactory. Special equipment has been provided in
some cases so that very little time is lost between the
printing of a character and the pasting of it on a blank
for use in the office. Fig. 10 is a reproduction of typ-
ical orders printed on the tape and Fig. 11 an interior
view of a large brokerage office in New York, showing
the telephone typewriter machines.

Police Department Service

Telephone tj^ewriters have been found particularly
serviceable in handling police items and alarms, espe-

[188]

Telephone Typewriters

daily in those cases where an alarm is to be broadcast
over a network to a large number of receiving poiats
where records are kept for future reference. For this
purpose comparatively simple switching systems have
been devised so that any one or any group of a number

Fig. 13. Telephone Typewriter Network for Connecticut Police

of stations can be quickly connected to a single sending
instrmnent at Headquarters and acknowledgment given
to Headquarters of the receipt of the meassage at each
receiving station. The fact that the instrument at the
receiving point does not require an attendant at the
time the message, which may be in multiple copy form,
is coming in is also quite a valuable feature.

One very important police department installation
was made in New York about a year ago. In this in-
stallation each borough headquarters is provided with
sending equipment and switching arrangements for
enabling police items to be sent to one or any group of

[189]

Bell Telephone Quarterhj

the borough precinct police stations. In addition, tie
lines are provided from Manhattan Headqviarters to
each of the other borough headquarters so that gen-
eral police alarms can be flashed without delay to all
precincts in the greater city. A view of the installa-
tion at Police Headquarters, Borough of Manhattan,
is shown by Fig. 12.

The telephone typewriter has also been found valu-
able for state-wide use by police organizations and Fig.
13 illustrates such a police network now operating in
Connecticut. There are 14 cities and to^vns connected
in this network which is so arranged that any station
can receive from and send to all the other stations.

Airway Service

The need for quickly reporting weather conditions
at airway stations has been satisfied for a number of
the larger flying fields by providing telephone type-
writer service over trunk lines between these fields.
At regular intervals the weather reports, particularly
those affecting flying, are passed between the stations
together with other information concerning the arrival
and departure of planes.

General Commercial Applications

Commercial concerns in general are finding tele-
phone tjrpewriter service particularly useful. Thus,
a business man may dictate the terms of a price change,
or an important announcement in connection with his
business, and a typist transmits this information in a
few seconds to all of the stations of a network which
this concern may use to cover the country. Again a
central business office may wish to transmit orders for
coal or other supplies to outlying supply depots and
the telephone typewriter with a switching system is
found to be the most convenient and satisfactory
method.

[190]

Telephone Typeivriters

An office in a large city is connected by telephone
typewriter with a factor}^ in a suburban to\^Ti. Orders
received in the office are transmitted to the factory and

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Fig. 14. Order for Merchandise Handled by Page Telephone Typewriter.

printed on a special form. Copies of tliese forms are
also made at the sending station, one of which may be
kept for record purposes, another sent to the sales-
man, and still another copy to the concern that has

[191]
13

Bell Telephone Quarterly

placed the order. Many hours may be saved by these
methods. A reproduction of a typical order placed on
a form by a telephone typewriter instrument is shown
in Fig. 14.

It is a comparatively simple matter to provide
switching arrangements so that a central sending sta-
tion of a network can be connected to any one, any
group or all of the other stations for sending and re-
ceiving messages. Furthermore, any station can be
connected by the central operators to any other station.
Fig. 15 shows a typical small switching cabinet of this
type which may be placed alongside of the telephone
typewriter machine so that the operator can send and
receive messages and make switching connections as
may be desired.

Telephone Typewriter Exchange Service

The Bell System provides equipment and circuits
and gives a service which permits subscribers to handle
their own messages, telephone or telegraph, in their
own way. Telephone typewriter instruments have to
a large degree the flexibility of telephone instruments
and can be interconnected through suitable switch-
boards in the same manner. It is, therefore, quite
feasible to provide a large number of subscribers in
their business offices with these instruments and to fur-
nish wire interconnections between these subscribers
as they may indicate their desires. The service need
not be confined to a single city but any subscriber in
New York may be connected to any subscriber similarly
equipped in some other city, the time required to com-
plete this connection being of the same order as that
required to complete a telephone connection between
the same two points. A service of this character is
analogous to present telephone service in that the sub-
scriber would, in general, provide his own telephone
typewriter operator and on the completion of the de-

[192]

Fig. 15. Tape Telepliouc Typewriter with 10-Liue ywitchin}^; Cabinet

Telephone Typewriters

sired connection to the called subscriber would handle
his messages in any way that he saw fit.

An experimental service of this character has been
established between switchboards and stations installed
in telephone company offices in New York, Boston and
Chicago and some adjacent cities. The circuit layout
for this installation is shown in diagrammatic form in
Fig. 16 and Fig. 17 shows the switchboard installed in
New York. All information concerning calls is

■

POWT\»fl

V\l//

^ / BOSTON

/(l3 LOCAL stations)

#

NEW YORK

(2S LOCAL stations)

CHICAGO

(l7 LOCAL stations)

Fig. 16. Circuit Layout for Telephone Typewriter Exchange Service

handled by telephone typewriter instruments and it has
been found that a direct connection between a station
in New York and a station in Chicago can be made in a
very short time, while connections between Boston and
Chicago or the reverse requiring one switch at New
York also adds but little to the time required.

When placing a call, the subscriber merely switches
on the power at his station which is analogous to lift-
ing the receiver from the hook. This operation lights
a line lamp at the telephone type^vriter switchboard
and the operator responds by connecting his telephone
typewriter instrument to the calling subscriber's line
and writing the letters, for example, '' NY OPE."
The calling subscriber types the station connection de-
sired and awaits response from the called subscriber

[193]

Bell Telephone Quart erhi

or from the operator if the connection cannot be com-
pleted. A typical message of this character showing,
in addition, a record of the information passed between
the subscribers and the operators is shown in Fig. 18.

NY OPR <-New York Operator's Responst

CGO SS* FOR NY 1 ♦-New York Patron's Call

OK «- New York Operator

CGO OPR ♦-Chicago Operator's Response

NY TO CGO 89 «~New York Opervator

OK «- Chicago Operator

THIS IS CGO 89 «- Chicago Patron's Response

T55-NY 1 - APR 22,1929 9:25 AM

MR. J. U. WOLCOTT, GENERAL SALES ENGINEER,
ILLINOIS BELL TELEPHONE COMPANY - STATE AREA,
CHICAGO, ILLINOIS.

REFERENCE OUR TELEPHONE CONVERSATION THIS MORNING. HAVE CHECKED
WITH OUR MAILING DAPARTMENT AND FIND THAT 2000 COPIES OF FORM E-822
WERE SENT YOU EXPRESS OM APRIL 10. IF YOU DO NOT RECEIVE THEM
WITHIN A DAY OR SO PLEASE ADVISE AND I WILL SEND 2000 ADDITIONAL.

7 W GALWAY

FWG - MBK

FINIS 9:28

CLR

-•-New York Patron

OK

-♦-Chicago Patron's Response

Fig. 18. Typical Message Handled by Telephone Typewriter Exchajige Service

Explanatory notes are added to indicate the sequence
of operations and the character of the necessary infor-
mation which is required to enable the call to be prop-
erly completed.

R. D. Parker.

[194]

An Interview with President W. S. Gifford

Excerpts from a neicspaper report in the Montreal
'' Gazette " of May 24, 1929, of an interview ivitli Mr.
Walter S. Gifford, President of the American Tele-
pjhone and Telegraph Company,

YESTERDAY, up in the mountain peak of the
new Bell Telephone offices on Beaver Hall Hill,
]\Ir. Gifford told The Gazette some surprising
things about the telephone business, about the jor ogress
of all industry and about life and men in general, and
The Gazette, by a series of questions, learned something
about Mr. Gifford himself and how he directs a corpora-
tion with 400,000 people on its staff and 450,000 people
o^vning its shares.

Mr. Gifford foresaw the day, " in due time," when
a man in Montreal will be able to pick up his telephone
and without hanging up speak instantly with a man in
Vancouver as easily as one speaks across the city today.

He told of the new ten million dollar plan to lay a
telephone cable across the Atlantic by which, within
the next few years, conversation with London and Paris
\vill be as easy and certain as it now is between Mon-
treal and Toronto.

He pictured the common use of telephone conunimi-
cation between land and aerojDlanes, moving trains and
ships at sea or between two moving objects, and the
possible apiDlication of television to practical use.
And, with these as examples, he expressed his belief
that we are today developing a new form of civilization
with constantly increasing freedom and wealth for the
individual.

' ' A great many jDeople seem to be afraid, ' ' Mr. Gif-
ford said, " that we are in a material age, and that we
are becoming standardized. I ])elieve the opposite is
true. I think our present industrial system is produc-

[1951

Bell Telephone Quarterly

ing a liberty of thought and action for the individual
such as history has never kno^vn.

*' Not long ago the only way a man obtained wealth
was by taking it from other men. One individual be-
came wealthy; a great many others became poorer.
That is not the case today."

Wealth from Nature

" How is wealth obtained today, Mr. Gifford? " The
Gazette asked.

*' Today we are taking wealth from nature," Mr.
Gifford said. '' Science is showing how it can be done
and industry is doing it. The alliance between science
and industry is producing new wealth for the benefit
of all. The result is a more general level of wealth,
less drudgery, greater freedom for the individual. The
man driving a tractor in his field is better off than the
man with his hoe a few years ago. The man tending
an automatic stoker is better off than the man feeding
a furnace by shovel. There is more time for the indi-
vidual to develop himself than ever before."

" And is he doing it? " was the query.

" Ah, that is a different matter. I do not say that
the best use is being made of the new time which the
individual has. I merely say that the time is there for
him to use. If the best use perhaps is not being made
of it I think that will work itself out. We are not al-
together accustomed to this new freedom yet."

Mr. Gifford was asked about the developments in
telephony which he had mentioned. '' Are these things
all being accomplished through science, Mr. Gifford? "

*' Yes. You have probably heard of our research
laboratories. We have about five thousand men there
engaged in studying telephone problems and applying
the results they find."

" How much do you spend a year in that work, Mr.
Gifford? "

" We are spending about twelve million dollars a

[ 196 ]

An Interview with President Gifford

year now in research alone. That is a large suni of
money, but it is yielding splendid returns. It is not
only producing better and better telephone service; it
is also preventing increases in costs by finding more
efficient methods of production."

" Are television and the trans-Atlantic telephone
the results of such research? " was a further question.

" Yes," Mr. Gifford replied, " but a great deal of
the most important research work is connected with
matters which are less spectacular. Television and
radio are wonderful achievements. They have wiped
out distance in sight and sound, for by means of them
we now can see and hear from one end of the earth to
the other. But I would not describe such things as
our chief aim in the telephone business."

Bell's Chief Aim

'' What is your chief aim? ", The Gazette asked.
*' Our chief aim is to make everyday telephone service
better and better. We are making progress. A few
years ago when you put in a long distance call you were
obliged to hang up your receiver and wait, perhaps a
considerable time, before your call was completed.
Today we have immediate communication between
many cities.

'' When you call Toronto from Montreal now, if
you give the Toronto nimiber you want, your call is
usually completed within two minutes or so while you
hold the receiver. A man in Kansas City can now get
a number in New York almost inmiediately, a distance
of about two thousand miles."

" Will the day come when we shall be able to talk
with Vancouver on that basis ? ' ' The Gazette asked.

" Yes," Mr. Gifford said, '^ that will certainly come
in due time. It is chiefly a matter now of being able
to build the necessary facilities. That is the sort of
service toward which we are working in the United

[197]

Bdl Telephone Quarterly

States and toward which I know the Bell Telephone
Company is working here."

'' Where does research come into that, Mr. Gif-
ford?"

'* Research produced the mechanical equipment in
the first place," Mr. Gifford replied, "■ and it is con-
stantly discovering new economies which make it pos-
sible to give this better communication without great
increase in cost. For example, our research people
may make a study of a simple thing like telephone cord.
That has no direct relation to instant service between
Montreal* and Vancouver, but if they develop a cord
which will wear better they may reduce general costs
by several million dollars, and that makes possible im-
provement in service without corresponding increase
in cost."

Mr. Gifford himself is an exponent of the greater
freedom which he believes modern industry has pro-
duced for the individual. There is none of the cap-
tain of industry front about him. He has none of the
tricks of the big executive in the movies. He shows
no evidence of the hurry and stress which most people
associate with big business. He finished Harvard
when he was nineteen, and decided he had better get
a job. He wrote an application which he intended to
send to the General Electric Company, but by mistake
he sent it to the Western Electric, which is an associ-
ated company of the American Telephone and Tele-
graph.

He got the job and began as a clerk. He found a
way to do the work he was given so much more quickly
than it had been done that he was all finished for the
day by two or three o 'clock in the afternoon. Instead
of trying to appear busy when he was not, young Gif-
f ord thereupon started going home in the middle of the
afternoon. He might have been fired, but his boss de-
cided to have a look at a yoimg man with as much ef-
ficiency and as much nerve as that and the rest of the

[198]

An Intervieiv with President Gifford

story is simple: a sure steady climb to the top of the
heap by the time he was forty.

Today, at forty-four, Mr. Gifford is a pleasant un-
worried individual, interested in everything and dis-
turbed by nothing. He treats life casually, does his
best all the time, and doesn't take fright if things go
wrong.

The Gazette asked him yesterday about his job.
'* Do you find that you have to work very much harder
now than when you were a clerk, Mr. Gifford ? ' '

^' No. I don't think so. It's a little difficult for
me to say because I like this work so much. I'm not
always sure when I 'm working and when I 'm not. ' '

** Do you follow regular office hours or do you travel
around the country all the time*? "

'^ Oh, I have pretty regular programme for the day.
I'm usually at my office every day."

'' Do you do much work at nights? "

" I never work at nights. And I never work Sat-
urday afternoon or Sunday. I do my work in the ordi-
nary day."

*' But when do you get time for thinking and plan-
ning? "

'' I doubt Yerj much if a man ever shuts himself
in a room, sits down and says to himself: ' Now, I'm
going to think. ' At least if he does, I doubt if he does
much thinking. Most good thinking is spontaneous.
It comes when you're shaving or when you are talking
with people. It is sometimes almost sub-conscious. ' '

*' AAHiat is your biggest problem? "

'' I suppose it is keeping up enthusiasm and keeping
enthusiasm in others. Or perhaps it is finding good
men. The most important thing in any business is to
find the right men. And when you find them the thing
is to let them do their work. An executive should
never do anything which he can delegate to somebody
else."

[199]

Bell TelepJwne Quarterly

Less Bunk in Business

" Do you think there is less bunk about business
than there used to be, Mr. Gifford? "

'' Much less. The pretentious conferences, the
domineering executive, the stuffed shirt, are all going
or gone. We don't shout at people nowadays and ham-
mer the desk. We really hardly give orders. We sug-
gest certain courses of action and the man who carries
them out does his work better because he contributes
something to the decision."

*' Do you take exercise to keep fit, Mr. Gilford? "

'' No."

*' Not golf? "

'' No. About four times a year. Obviously, there-
fore, I don't play golf well enough to like it. I never
think about my health and perhaps for that reason I
have good health. It is often the men who worry about
health and follow all sorts of rules who become ill."

'' Do you diet?"

^' No. I eat what I want to eat and I probably
smoke too much. There are too many interesting
things in the world to fill your head with rules about
health and rules about success. You read of one man
who achieved success by great attention to detail. You
read of another success who paid no attention to de-
tail at all. What are you to believe? The answer is
that you should follow your own course. The things
which suit me may suit nobody else. Certainly they
are not rules for success."

'' What is success, Mr. Gifford? "

** Success is reaching the limit of your capacity and
ability. A man in a small job may be more successful
than a man in a big one."

[200]

Bell System Buildings — an Interpretation

FORTUNATE indeed is the traveler who catches
his first glimpse of New York from the deck of
an in-coming ship. As the vessel steams through
the Narrows and across the Upper Bay to her North
River pier, the New York skyline is unfolded in a
changing panorama unique in its groupings of mass
and form. The tall buildings that cluster about the
lower end of Manhattan Island stand out sharply with
pinnacles, pyramids and colonnaded smnmits outlined
against the sky. Here and there a wisp of light gray
smoke or steam floats lazily from the top of one of these
man-made cliffs. A few low buildings accentuate the
height of the skyscrapers. It is a blase traveler who
vv'ill stay below while his ship is passing the Battery.

As she slowly wends her way up the Hudson, es-
corted by puffing tugs, the vessel leaves behind the tow-
ering range of the down-town office-buildings. The
city spreads out in a wide plateau of lesser structures
over which loom here and there isolated buildings or
groups of buildings of heroic projDortions. One of the
most impressive of these, seen from the river, is the
massive pile which a French commentator has described
as possessing '' a certain barbaric majesty," the New
York Telephone Building.

Alone, dominating the low buildings on the adjoin-
ing blocks, it rises by gargantuan steps and terraces
and set-backs, drawing the eye irresistibly upward to
its massive summit. Deep shadows lurk in recesses
half a dozen stories in height, but the sun and the wind
from the river have full play on the myriad windows
that glitter in the vast buff surfaces of the structure.
It is no mere brick box, like so many of the earlier sky-
scrapers. It expresses something. It has personality
—this telephone building.

[201]

Bell Telephone Quarterly

West-bound, another steamship moves slowly away
from the Embarcadero and heads into San Francisco
Bay en route to the Golden Gate and thence out into
the Pacific Ocean. The passengers, gathered at the
rail for a last look at the City, see vivid against the Cali-
fornia sky a great white tower. Its proportions, its
soaring lines give to this building an aspect almost of
delicacy, despite its size. The monumental effect is
heightened by the whiteness of the structure and by its
aloofness.

Like that other building far away on the banks of
the Hudson, this too, stands alone, a giant in compari-
son with those about it. High it towers above the sec-
tion south of Market Street— this new Telephone
Building, headquarters of the Pacific Telephone and
Telegraph Company. And, gazing at it, the traveler
cannot but feel that this building, too, stands for more
than stone and steel and mortar,— that it represents
not unworthily a certain spirit and a certain aspiration.

Many Expressions of the Same Policy

These two buildings, separated by a Continent,
stand physically nearly three thousand miles apart.
Yet they are two tangible expressions of a spirit and
an aspiration common to the organizations which
reared them and to the nation-wide organization of
which each is a part. They are representative of the
best in modern telephone architecture, but they are not
unique. Almost midway between them— at St. Louis
—there stands another great castellated pile which
houses and typifies the headquarters of the Southwest-
ern Bell Telephone Company. Denver, too, has such
a building. So has Cleveland. So has Newark. So
has Montreal. But these and others of like magnitude
are only one form in which the building policy of the
Bell System is expressed.

Had our traveler looked about him in New York,
in San Francisco, or in almost any considerable town

[202]

ADillNlSTRATIOX BUILDIXG OF THE XeAV YoRK TELEPHONE Co., NeW YoRK. N. Y.

STFiKr

tl^Se^BB

«J

?

!

J.

■#-

' ' i - J i J < •

1 1 1'ij'i i

c i I ^ ^ ^

iiB

g I S fi

r B g I I I ^ ^

r= i B i E i 8 i ■ S tf

i i i i I s i » ^ I

&■•'■ i i fi I i E I i i « ^^

S £ as K « ^

Administration Building of the New Jersey Bell Telephone Co., Newark, N. J.

Bell System Buildings— An Intepretation

between, he would have found other telephone build-
ings, smaller, less monumental, but to the seeing eye
not less expressive of the spirit that animates the tele-
phone organization.

Buildings Appropriate to their Surroundings

Among these smaller structures are many which
are frankly business buildings in business neighbor-
hoods, conveniently located, economically constructed,
designed to promote the most efficient service to the
jtublic with adequate provision for the health and com-
fort of the telephone workers. Some of these struc-
tures are ornaments to their localities, as for example
the buildings at Syi'acuse, Pontiac, Oklahoma City,
Dallas, and many other places. Certain of them have
been designed to conform to a well-defined local archi-
tectural tradition, witness the Spanish style of the tele-
phone buildings at Ventura, California, Phoenix, Ari-
zona, and elsewhere, and the Colonial brick buildings
in Maryland and other Eastern States. The new tele-
phone building at Dallas, Texas, will be a notable ex-
ample of the application of the Aztec architecture of
the Southwest to modern American requirements. In
San Francisco's Chinatown is a telephone building in
Chinese style.

Still others among the smaller telephone buildings
are situated in suburban or other strictly residential
areas. Many of these have been designed to have all
the outward appearance of private residences in keep-
ing with the best local standards of construction. Such
are, for example, the brick and limestone Warwood,
West Virginia, telephone building, and the Colonial
brick building with white doorway, shutters and roof
rail at Silver Spring, Maryland. Despite its use as a
thoroughly modern telephone office, this building would
not have looked out of place to Washington's Conti-
nentals, had they passed it on one of their long marches
during the Revolutionary War.

[203]

Bell Telephone Quarterly

At Scituate, Massachusetts, stands a telephone ex-
change which looks every inch a comfortable modern
New England rural home. Its picket fence and weath-
ered shingles fit into the Massachusetts landscape as
naturally as the wind-swept wild roses by the New Eng-
land roadside.

At Hamilton, Ontario, a telephone building adja-
cent to a church has been erected in the Gothic style
of architecture which harmonizes with the surround-
ings.

Unattended Buildings

Another interesting development of recent years in
the housing of Bell System telephone plant has been
the erection of small buildings to shelter unattended
dial switching equipment. In these little sti^uctures
the intricate apparatus alone effects connections be-
tween subscriber and subscriber, picking out with im-
canny accuracy, the telephone lines whose numbers are
dialed, while no eye sees, no ear hears, the moving parts
in their orderly though complicated maneuvers. These
unattended central offices have given rise to some pretty
problems, for example, how to keep them at the best
temperature for the apparatus and for the plant main-
tenance men who ocassionally visit them to give the
equipment necessary attention. But especially careful
thought has been given to the exterior appearance of
the little buildings to the end that they, too, may blend
into their surroundings and fittingly exemplify the de-
termination of the Bell Telephone organization to have
its buildings worthily represent good taste and devotion
to public service. Very different in conception, yet
well suited to their respective locations, are such im-
attended buildings as the one known as Delmar, Al-
bany, New York, and those at Pirn and Arcadia, Cali-
fornia.

[204]

Bell System Buildings— An Intepretation

Some Characteristics Common to Telephone Build-
ings AS A Group

These diminutive structures stand at the opposite
end of the scale from such monumental buildings as
the headquarters of the New York Telephone Company
—the largest telephone building in the world— with
its three-quarters of a million square feet of floor space,
housing six thousand people as well as equipment serv-
ing close to one hundred thousand telephones. Yet
both exemplify the same spirit, the same aspiration,
and each is planned and constructed with a view to best
serving the public needs of its particular locality, as are
other telephone buildings of every intennediate size.

There are roughly six thousand buildings in the Bell
System, of which almost half are company-o^vned
(This is exclusive of those occupied by the Western
Electric Company, Incorporated, with its huge manu-
facturing plants at Hawthorne, Illinois, and Kearny,
New Jersey, and storehouses elsewhere throughout the
country, not to mention its other great industrial plant
under construction at Point Breeze, Maryland.)

The Bell Telephone Company-o^med properties
represent a capital investment of approximately sixty-
five million dollars in land and two hundred and ninety-
five million dollars in buildings. This is probably the
largest group of buildings belonging to any one organi-
zation in the United States. During 1928, one hundred
and twenty-two new buildings and thirty-nine additions
to buildings were erected. The program for 1929 in-
cludes two hundred new buildings and eighty major ad-
ditions. It is an undertaking of some magnitude.

But mere size in and of itself is of less significance
than what stands behind it. What qualities, then, do
these thousands of buildings have in common % What
is it that they express— more especially those of them
which have been added to the group during the last
few years and those now under construction or planned
for the future?

[ 205 ]

Bell Telephone Quarterly

Utility

First of all— utility. Of course, the raison d'etre
of the whole vast fabric is to serve, to be useful, to pro-
vide adequate, efficient and economical telephone com-
munication. Obviously the primary consideration in
planning telephone buildings, as in every other form
of telephone construction, is how best to meet these re-
quirements. And in this the telephone engineers have
been notably successful. To mention but one among
many examples: uniform floor plans for central office
equipment have been worked out, applicable to various
types of equipment and to the varied conditions as to
available space. Economy and efficiency in the in-
stallation, operation, maintenance, expansion and re-
placement of central office equipment is materially en-
lianced by the use of these uniform floor plans.

Beauty

Another consideration which follows so closely after
utility as scarcely to be subordinate to it, is beauty-
beauty of line, of form, of detail, of mass, of setting,
of color; beauty of exterior and of interior.

One of the most significant tendencies of our time
is the emergence of an appreciation of beauty in Amer-
ican life— the development of a national taste too long
obscured by intensive absorption in material progress.
The modern cry for beauty reflects the emergence of a
new spirit in American civilization, an outgrowth of
the new prosperity and leisure of today. The hunger
of the heart for beauty, starved for generations, is
gradually being satisfied.

You see it everywhere— this modern flair for the
beautiful. The new trend finds expression in countless
ways and in many places. In interior decoration, in
motor-cars, in fountain-pens, in telephones, utility has
ceased to be all-sufficient. There must be beauty, too.

In no field of American endeavor, probably, has

[ 206 ]

Administration Building op the Southwestern Bell Telephone Co., St. Louis, Mo.

ADMIXISTRATIOX BlULDING OF THE PACIFIC TeLEPHONI: AND TELEGRAPH CO.

rRANcisco, Calif.

SAJi-

Bell System Buildings— An Intepretntion

there been more marked progress toward the attain-
ment of beauty in recent years than in architecture.
Discriminating use of choice woods, face brick, stucco,
limestone and other materials gives individuality and
distinction to homes and business buildings of the bet-
ter sort. Progressive architects today seek a style that
will harmonize with its surroundings and be appro-
priate to the climate and perhaps to the histoi'ical back-
ground of the locality. Developing, modifying, adapt-
ing to new conditions the architectural styles of the
Old World, our architects are gradually working to-
ward the creation of a distinctively American school,
which today finds expression ^particularly in what has
been called the ' ' American perpendicular ' ' style em-
ployed in some of our modern skyscrapers.

A Distinctively American Architectural Form

This architectural form may be briefly described in
non-technical language as placing emphasis on perpen-
dicular lines which lead the eye upward unchecked by
horizontal interruptions, save where, at intervals, suc-
ceeding tiers of stories are set back, leaving terraces
which lend to the finished structure somewhat the
effect of a gigantic step-sided pyramid, surmounted
perhaps by a lofty central tower. This type of con-
struction, besides being immensely impressive, has very
practical value in admitting an abundance of light and
air not only to the building itself but to the street below.
New York and other municipalities, anxious to avoid
having additional business streets transformed into
dim canyons with the perpendicular walls of closely set
skyscrapers rising continuously from the building line,
have adopted zoning regulations which require the u])-
per stories of high buildings to be set back at levels
varying with the width of the street on which they
front. With the impetus thus given to the use of this
new tyx3e of architecture, imaginative artists are al-
ready iDortraying the city of the future as a vast ex-

[207]

14

Bell Telephone Quarterly

panse of pyramidal buildings rising step by step to
the limits of economical construction.

Among the most notable examples of this new archi-
tectural style are the group of headquarters buildings
completed during the last few years by Associated Com-
panies of the Bell System at New York, Newark, Cleve-
land, Saint Louis and San Francisco. L' Illustration,
the famous French weekly, published an article some
time ago on the evolution of the skyscraper in the de-
velopment of American cities. Out of five representa-
tive American skyscrapers shown in full page illustra-
tions in this French publication, three were telephone
buildings— those at St. Louis, New York and San Fran-
cisco. The other two were the Chicago Tribune Build-
ing and the Woolworth Building.

The Bell System may fairly be said to have made
an outstanding contribution to the development of one
of the most hopeful trends in modern American archi-
tecture—the working out of a distinctive style adapted
to American conditions and expressing something of
the vitality and aspiration as well as the solidity which
we like to believe are representative of the best ele-
ments in our modern American business life.

Adaptation to a Definite Purpose

The undeniable beauty achieved by a happy appli-
cation of this distinctive style is not only a beauty of
line and mass and grouping. These telephone build-
ings have also the beauty which comes from appropri-
ateness to their surroundings and adaptation to the
purpose for which they were designed. These qualities
are shared by many of the smallest and most impreten-
tious telephone buildings as well as by the skyscrapers.
The modest and home-like central office building, in-
distinguishable from the comfortable residences by
which it is surrounded, exemplifies the aims toward
which the Bell System is striving as truly as the thirty-
two story metropolitan headquarters structure. Util-

[208]

Bell System Buildings— An Intepretation

ity, beauty, appropriateness to its location, adaptation
to the purpose in hand— each is characterized by these
same qualities, each is a different manifestation of the
same spirit.

Modernity

Modernity is another quality shared even by the tel-
ephone buildings which are outwardly faithful repro-
ductions of Colonial homes. For what is more modern
than the up-to-date telephone equipment which these
buildings house?— an equipment that makes possible
word-of-mouth communication across the Continent or
across the Atlantic, and puts within reach of any Bell
System customer 28,200,000 telephones in North Amer-
ica and Europe, or 85% of all the telephones in the
world.

In such matters as fire protection, ventilation, sani-
tation, and intelligent provision for the comfort and
convenience of customers and workers, also, the tele-
phone buildings are thoroughly modern. The inviting
cafeterias and rest-rooms for employees off duty, audi-
toriums for conferences and employee training-courses,
and the completely equipped medical departments in
the larger buildings are additional evidence of the up-
to-date standards that have been adopted.

In the decorative arts, what is modern shades by
degrees into what is modernistic. In the interiors of
its newer buildings the Bell Sj^stem has made use of
decorative motifs which, while thoroughly modern in
feeling and inspiration, aA^oid the excesses of the ex-
tremely modernistic school. The brilliant hanging
lamps in the lobby of the New York Telephone Build-
ing, the striking ceiling, with its opulent Chinese motif
in the San Francisco building, the wood panels, lamps
and furniture in the executive offices and directors'
room of the building at Newark, may be mentioned as
examples of a restrained modernism in decoration.
The telephone industry is a relatively young business, a

[209]

Bell Telephone Quarterly

large proportion of the telephone employees are young,
and it is appropriate that the decorative technique
which appeals to discriminating present-day taste
should be employed in the embellishment of telephone
buildings.

Solidity

Nor does such a decorative scheme preclude the at-
tainment of an effect of solidity befitting an institution
of such stability as the Bell Telephone System. Archi-
tects and builders know, and the casual observer dis-
cerns, that substantial and durable construction is a
characteristic feature of Bell System buildings. There
is no jerry-building here. Soundness and durability
are essentials that are rigidly required.

Foresight

A closely related feature of telephone construction
is the provision for future requirements which is made
possible by informed forethought. As a general rule,
new buildings are planned to provide for the telephone
needs in their localities over a period of about eight
years, although this is subject to variation to meet spe-
cific conditions. If provision were made for the needs
of the very remote future, heavy carrying charges
would have to be paid on account of excess space pro-
vided. On the other hand, if the building were ade-
quate only for immediate needs, there would be risk of
the service being impaired and excessive building costs
being incurred due to frequent alterations and enlarge-
ments of the premises. Eight years is believed to rep-
resent a sound balance between these alternatives.

Most of the telephone buildings, except the very
largest and the smallest ones, are so constructed as to
permit of future extension upward. Foundations and
framework are built to carry the weight of additional
stories if and when required. In addition, several of
the larger buildings — at San Francisco, at Newark, the

[210]

Administration Biilding of thf Ohio Bell Telephone Co., Cleveland, O.

1. Lawndale Central Office, Columbus, O. l'. Telephone Building, Springfield, O.

Bell System Buildings— An Intepretntion

Telephone and Telegraph Building at 195 Broadway,
New York, and others— are so designed as to permit
of later additions on adjoining lots. For the general
run of telephone buildings, it is possible to estimate
probable future requirements over a period of from
eighteen to twenty years. In the past telephone growth
has moved forward so rapidly as to prove such fore-
casts quite conservative. And, of course, it is to be
kept in mind that most buildings have a useful life of
considerably more than twenty years.

Buildings that Reflect a Business Personality

Insofar as these qualities of utility, beauty, appro-
priateness, modernity, solidity and forethought do char-
acterize the telephone buildings,- these buildings faith-
fully mirror the ideals— the personality, if you wdll—
of the Bell System. They are indispensable instru-
mentalities used in the work of rendering service. But
they are also an earnest of the System's realization and
intention faithfully to meet the obligations which rest
upon it. They are tangible evidence of the thought
and effort and care that are being put into the work
of furnishing " a telephone service for the nation more
and more free from imperfections, errors or delays, and
always at a cost as low as is consistent with financial
safety."

They are evidences, too, of the recognition by the
Bell System of its duty to provide the telephone work-
ers with healthful, comfortable and convenient places
in which to work. Cafeterias, rest-rooms, medical of-
fices, and auditoriums for employee gatherings serve
a purpose more far-reaching than merely catering to
the needs of telephone workers. They are elements
in the Bell System personnel policy which ^' recognizes
its responsibilities to its employees " and aims " to pay
salaries and wages in all respects adequate and just and
to make sure that individual merit is discovered and
recognized. ' '

[■'211 ]

Bell Telephone Quarterly

Adequate provision for housing Bell System equip-
ment and workers is also, of course, an essential factor
in making possible earnings " sufficient to assure the
best possible telephone service at all times and to in-
sure the continued financial integrity of the business."
Intelligent forethought in providing for future require-
ments is all-important in the interest of those who have
invested their savings in Bell System securities as well
as in the interest of the telephone users ; and perhaps
in no phase of tele]3hone activity is forethought more
strikingly exemplified than in the building program,
past and present, of the Bell System.

Not only do the telephone buildings express the Bell
System's sense of its three-fold obligation to the tele-
phone users, the telephone employees and the telephone
investors, but in a larger sense they express the Sys-
tem's realization of its fundamental obligation to the
country as a whole, which includes customers, employ-
ees, investors and the public at large. For the Bell
System is an American institution, and these telephone
buildings are expressive of the best in the modern
American spirit.

Expressing the Modern American Spirit

Comfort, convenience, beauty, the conquest of the
forces of nature for the service of mankind— all char-
acteristic of the present age— find expression in these
practical monuments dedicated to the service of elec-
trical communication. Business buildings, such as
these, are as truly representative of America 's present-
day spirit as were the Gothic cathedrals of the medi-
aeval age that reared them. Such constructive genius
as was devoted to the erection of the castles, palaces,
and cathedrals of Europe has not died out with the lapse
of the conditions and Zeitgeist that gave them birth.
In modern America it finds expression in new forms
more suited to the demands of the modern spirit, espe-

[212]

Bell System Buildings— An Intepretation

cially in buildings devoted to public service through
the medium of business enterprise.

Telephone buildings are, broadly speaking, public
buildings, as truly as any City Hall or Public Library.
They exist for the service of the public and it is the
public's extensive use of that service which makes them
necessary. The public has an interest in them; and
public taste is not unresponsive to the inspiring and
formative influence which such buildings exert. In
many a community the newer telephone buildings ap-
peal notably to civic pride. Citizens are proud to point
to a structure which they justly feel is an ornament to
the municipality as the home of their telephone organi-
zation.

Telephone Buildings as Objects of Civic Pride

Shortly after its completion, the New York Tele-
phone Building was honored by the Broadway Asso-
ciation with the presentation of a bronze plaque in-
scribed " In Eecognition of Its Contribution to Civic
Advancement Through the Erection of this Great
Building, this Tablet is presented to the New York
Telephone Company by the Broadwav Association of
the City of New York, MDCDXXVII."

Joseph Pennell, certainly an exacting critic, called
this same structure " the most impressive modern build-
ing in the world." He made etchings of it in three
different stages of construction. " . . . the most over-
powering building, giving an impression of sheer
might," he called it, and again: " the giant bursts upon
you, soaring above the low buildings around it. ' ' Sum-
ming up, he said: " Come back and study it from other
streets that surround it. Thus you will learn that great
things are being done in the city, after all— far greater
than mere prigs from classical dictionaries and his-
tories and postcards of foreign monuments."

Of the same building Fiske Kimball, writing in The
Forum said: " Trivial reminiscenses of the Gothic have

[213]

Bell Telephone Quarterly

fallen away; puerile suggestions of historic style no
longer mar the interior. As in the best German work,
all is smelted anew in the creative spirit."

The San Francisco Telephone Building has likewise
called forth commendation from artistic critics. Ar-
thur Matthews of Berkley, the well-known mural
X)ainter, said of it, in an interview reported in the San
Francisco Call: '' To my mind the most successful of-
fice building in San Francisco is the new telephone
building on New Montgomery Street. There we have
the American skyscraper as a distinct new type with
no attempt to stick heavy columns and such devices on
top of it in imitation of something else, with nothing
to support and no excuses for being.

Writing in the Pacific Coast Architect, Harris Allen
said of this same structure: " From near and far, from
the water which surrounds the city and from the hills
which dot its area, the profile of the Telephone Build-
ing adds its monumental accent to the mass profile of
San Francisco — and this, perhaps, is what gives us
most reason for praising its creators." He called the
building " a thing of beauty ... a surprising com-
bination of massive strength and airy grace."

Another Bell System building that has attracted
much favorable comment from architectural authorities
is the headquarters of the American Telephone and
Telegraph Company in New York. The first section
of this building was erected some years ago and an ad-
dition nearly as large was more recently erected in
strict conformity to the design of the original. This
design differs materially from the set-back style which
characterizes the San Francisco, New York Telephone
and other large telephone buildings of recent construc-
tion. The headquarters of the whole Bell System is
thoroughly Greek in inspiration, and simplicity of line
is perhaps the dominant motif in its impressive white
facades.

It is the lobby, however, that in this building most

[214]

1. Mountain States Telephone Co. Headquarters, Denver, Colo. 2. Telephone
Building, Burlingame, Calif. 3. Unattended Telephone Building, Arcadia, Calif,
4. Telephone Building, Huntington, X. Y.

Telephoxe BriLDixos IX Residextial Areas: 1. Silver Spring, Md. 2. Scituate,
Mass. 3. Scarsdale, N. Y. 4. Yextura, Calif.

Bell System Buildings— An Intepretation

impresses the casual visitor. '' A Greek hypostyle
hall," Kenneth Clark called it in an article in the Ar-
chitectural Record, " possessing in size and scale some
of the impressiveness that the Egyptian Temples must
have had with their forests of columns and the vistas
of dignity and grandeur between them." He added
that: " To realize the true scale of this hall it should
be seen at night; the play of light on the highly pol-
ished walls and columns is very interesting and the
' bigness ' of the scheme is apparent, especially if one
sees, at the end of one of the long vistas, a figure pass-
ing. Then the coIuutqs assume their true proportions,
by contrast, for . . . they seem almost overpowering,
owing to their number and the scale, which in this in-
terior seems greater than in any other modern example.
The whole impression created is one of simple richness
and dignity, punctuated with the beauty of detail that
ornaments the work."

Some Details that Epitomize the Spirit of the

Whole

Time would fail to recount the architectural and
decorative details even of this one building alone, not
to mention those of 'the other notable Bell System
structures. Yet mention may be made of some few
items which, in some sense, epitomize the spirit of the
whole.

Atop a pyramid surmounting one section of the
Telephone and Telegraph Building stands a gilded
bronze figure of heroic size representing the '' Genius
of Electricity " by Evelyn Beatrice Longman, an im-
personation, so to speak, of the technical element in
the telephone business.

In the Grecian lobby below is a sculptured group in
bronze and marble dynamically expressive of '* Service
to the Nation in Peace and War." The heroic male
figure of Service stands before the flag, calling and

[215]

Bell Telephone Quarterly

sending forth the power of the nation. Above the
bronze are marble figures representing the messages of
peace and war as they speed along the wires that span
the United States. The Architect said of this group :
" It is refreshing to feel that our great corporations
appreciate the value of turning to our best artists for
works of this sort . . . which, by their abstract beauty
and inspiration, really underlie all successful business."
It is fitting that the center of telephone activities should
be distinguished with representations of Electricity and
of Service.

In certain of the Bell System buildings there have
been enshrined stands of battle-flags borne by the Bell
Battalions in the World War, a silent reminder of the
call to arms which drew so many telephone workers to
the colors in 1917-1918, and of the invaluable services
that they were able to render, especially in matters of
military communication. Those who gave their lives
in the War are commemorated in memorial tablets in
several of the buildings ; and other tablets honor those
who in time of peace have won the coveted national
awards of gold and silver Theodore N. Vail Medals for
Noteworthy Public Service. Such reminders cannot
but aid in perpetuating those traditions of the service
established by the men and women of the Bell System
who have met emergencies with courage and resource.

In the Newark building especial honor has been paid
to the memory of Mr. Vail, after whom the auditorium
has been named Vail Hall. A tablet in the hall con-
tains a bas-relief of Mr. Vail with an inscription which
recalls that his ' ' vision, courage and energy are an in-
spiration to all Bell Telephone workers."

This inspiration" is unquestionably one of the ele-
ments in formulating the intangible spirit, the aim, the
ideal, the aspiration, which characterizes the Bell Sj^s-
tem and which is represented in the thousands of build-
ings, great and small, over which the blue flag of the
System is displayed. It is a spirit of which telephone

[216]

Bell System Buildings— An Intepretation

workers are justly proud ; and it is worthily reflected in
the buildings in which they work. It might be said
of these telephone buildings, as President Hoover said
of the Government buildings in Washington: " In ar-
chitecture it is the spiritual impulse that counts.
These buildings should express the ideals and standards
of our times ; they will be the measure of our skill and
taste by which we shall be judged by our children's
children. . . . There is need of a daily inspiration
of surroundings that suggest not only the traditions of
the past, but the greatness of the future."

Richard Stores Coe.

[217

World's Telephone Statistics

January 1, 1928

IN view of the rapid extension of commercial radio
telephone service between the Eastern and A¥est-
ern Hemispheres, statistics regarding the tele-
phone development of the various countries of the
world have an added significance. Figures compiled
as a result of the annual survey conducted by the Chief
Statistician's Division of the American Telephone and
Telegraph Company show that on January 1, 1928, the
total number of telephones in the world was 30,990,304.
Of these telephones, 18,522,767, or 59.8 per cent, were
in the United States. Europe on that date had 8,623,-

DISTRIBUTION OF THE WORLD'S TELEPHONES

—=- January I. 1928=—

ALL OTHER
EUROPEAN
COUNTRIES

ALL OTHER
COUNTRIES

407 telephones, or 27.8 per cent of the world's total,
while the remaining countries, comprising all those in
Asia, Africa, Oceania and the entire Western Hemis-
phere outside of the United States, had 3,844,130 tele-
phones, or 12.4 per cent of the total number.

The accompanying tables and charts are based on
authoritative data received through correspondence
with officials of foreign telephone systems and are re-
produced from a printed pamphlet entitled, ^' Tele-
phone and Telegraph Statistics of the World, January

1, 1928."

[218]

World's Telephone Statistics

Comparative Telephone Development of Countries

Referring to the table '* Telephone Development of
the World, by Countries, " it is evident that the United
States, with 15.8 telephones for each 100 of its people,
leads the world both in absolute number of telephones
and in relative telephone development. There were in
the United States nearly 10 times as many telephones
per 100 population as there were in Europe or in the
world as a whole. Second in point of development is
Canada, with 13.2 telephones per 100 inhabitants ; then
follow in order. New Zealand with 10.0, Denmark with
9.3, Sweden with 7.7, and Australia with 7.2 telephones
per 100 population. In the United States all of the

TELEPHONES PER 100 POPULATION

UNITED STATES

CANADA

NEW ZEALAND

DENMARK

SWEDEN

AUSTRALIA

NORWAY

SWITZERLAND

GERMANY

GREAT BRITAIN

NETHERLANDS

FINLAND

BELGIUM

AUSTRIA

ARGENTINA

FRANCE

CUBA

HUNGARY

JAPAN

CZECHOSLOVAKIA

CHILE

ITALY

SPAIN

POLAND

MEXICO

BRAZIL

RUSSIA

January
4 6

1928
8

ITOTAL WORLDI

10

12

14

4 6 8 10

Telephones per 100 Population

12

14

telephones are operated by private companies, while
82 per cent of the total telephones in Canada, and 96
per cent of those in Denmark, are also under private
ownership and operation. Adding to these the tele-

[219]

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Bell Telephone Quarterly

phones of other private systems in various countries,
69 per cent of the total telephones in the world are
classified under private ownership, as is indicated by
the chart, " Ownership of the World's Telephones. '*
In point of absolute number of telephones, Germany
is second to the United States, but that country had
only 4.4 telephones per 100 of its population, which is

OWNERSHIP OF THE WORLD'S TELEPHONES

January 1, 1928

GOVERNMENT
31%

only about one-quarter of the telephone density in the
United States. Despite its comparatively low devel-
opment, Germany, however, exceeded Great Britain
and France in this respect by a considerable margin.
The best developed country in South America is Ar-
gentina, with 2.2 telephones per 100 population. In
Asia, Japan leads all other countries, but had a devel-
opment of only 1.2 telephones per 100 inhabitants.

During the year 1927, the number of telephones
throughout the world increased by 1,583,743. Of this
increase, 776,599, or about one-half, were added in the
United States. There were 515,897 telephones added
to all the European systems combined, which is only
two-thirds of the increase in the United States. Ger-
many increased its telephones by 126,501, Great Britain
by 122,217. In spite of the fact that France has a de-
velopment of only 2.2 telephones per 100 people, only
60,536 telephones were added to the French system dur-

ing 1927.

[222]

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Bell Telephone Quarterly

Telephones in Large and Small Communities

The table '' Telephone Development of Large and
Small Communities " is of special interest in that it in-
dicates the extent to which telephone service is made
available to the smaller communities in the principal
countries. Here again, the United States is well ahead
in providing telephone facilities in the less populated
sections. In fact, its development of 12.2 telephones
per 100 inhabitants in communities of less than 50,000

TELEPHONES PER 100 POPULATION
COMMUNITIES LESS THAN 50.000 POPULATION

January 1.1928
0 2 4 6 8 10 12

UNITED ^TATFS fe^l^^feaifeteia^ysfe^l^^

NEW ZEALAND

CANADA

DENMARK

AUSTRALIA

SWEDEN

NORWAY

SWITZERLAND

GERMANY

GREAT BRITAIN

NETHERLANDS

FRANCE

BELGIUM

CZECHOSLOVAKIA

JAPAN

POLAND

lO

m

m

m

m

10

12

Telephones per 100 Population

population is greater than the total telephone density
of any other country with the single exception of Can-
ada. New Zealand, with a comparatively small geo-
graphical area, had a development of 10.0 telephones
per 100 population in communities of less than 50,000
inhabitants. Canada was a close third with 9.6. The
comparative superiority of the United States in pro-
viding telephone service for its rural sections is strik-
ingly emphasized by the fact that in Germany there

[224]

World's Telephone Statistics

were only 2.6 telephones per 100 population in com-
munities of less than 50,000 people, while the corre-
sponding figures for Great Britain and France were
2.1 and 1.1, respectively. It can be said that with the
exception of New Zealand, Canada and the Scandina-
vian countries, telephone service in foreign countries is
still predominantly confined to urban centers.

TELEPHONE DEVELOPMENT
IN UNITED STATES AND EUROPE

16
16
14
12

>

18
16
14
12

/

/

^ y

10
8
6
4

2
0,

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8
6
4

2
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0 (

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3 a
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3 C

n c

■) c

3

D C

3 u

n <

1 c

n <

3 u

D C

I> <J

January 1st of eoch year

Telephones in Large Cities

London, on March 31, 1928, had 578,322 telephones,
or about 35 per cent of the total telephones in Great
Britain; the four cities of Berlin, Hamburg- Altona,
Leipzig and Munich had a total of 734,445 telephones,
or about 26 per cent of all the telephones in Germany ;
Paris alone had 36 per cent of the total telephones in
France. New York City, however, had less than 9 per
cent of the total telephones in the United States, which
further emphasizes the degree of concentration of Eu-
ropean telephones in larger cities.

From the standpoint of development, San Fran-
cisco, with 32.8 telephones per 100 population on Jan-
uary 1, 1928, led the principal cities of the world shown

[225]

TELEPHONE DEVELOPMENT OF LARGE CITIES
January 1, 1928

Estimated

Population
Country and City (City or Exchange Number of

(or Exchange Area) Area) Telephones

Argentina:

Buenos Aires 2,031,000 129,503

AtJSTRAIjIA '

Adelaide 328,000 29,517

Brisbane 295,000 21,701

Melbourne 975,000 85,884

Sydney 1,101,000 103,254

A TT^TRT A '

Vienna 1,957,000 105,420

Belgium:

Antwerp 505,000 28,131

Brussels 913,000 67,505

Ghent 260,000 8,067

Liege 415,000 13,521

Canada:

Montreal 880,000 161,380

Ottawa 178,000 35,252

Toronto 657,000 173,264

China:

Canton 943,000 2,475

Shanghai 1,600,000 27,217

Tientsin 846,000 9,085

Peking 1,350,000 29,857

Cuba:

Havana 581,000 46,998

Czechoslovakia:

Prague 718,000 32,465

Danzig, Free City of 390,000 17,508

Denmark:

Copenhagen 775,000 126,849

Finland:

Helsingfors 218,000 25,674

France:

Bordeaux 258,000 13,976

Lille 204,000 12,212

Lyons 576,000 21,487

Marseilles 659,000 21,128

Paris 2,900,000 314,541

Germany:

Berlin 4,105,000 448,030

Bremen 300,000 29,610

Breslau 569,000 39,619

Chemmtz 338,000 25,121

Cologne 714,000 61,682

Dresden 631,000 55,431

Dusseldorf 441,000 40,496

Essen 481,000 24,846

Frankfort-on-Main 477,000 54,416

Hamburg-AJtona 1,290,000 157,710

Hannover 431,000 33,262

Leipzig 693,000 62,309

Magdeburg 300,000 20,139

Munich 707,000 66,396

Nuremburg 475,000 32,582

Stuttgart 348,000 38,839

Great Britain and No. Ireland:*

Belfast 421,000 13,623

Birmingham 1,085,000 43,699

Blackburn 129,000 3,896

Bolton 182,000 5,102

Bradford 319,000 16,565

Bristol 396,000 15,760

Edinburgh 426,000 24,153

Glasgow 1,136,000 51,026

Hull 347,000 15,497

Leeds! 489,000 18,955

Liverpool 1,133,000 51,591

London 7,520,000 578,322

Manchester 1,070,000 55,255

Newcastle 465,000 16,947

Nottingham 297,000 13,311

Plymouth 213,000 5,701

Sheffield 498.000 16,525

♦March 31, 1928.

Telephones

per 100
Population

6.4

90

7.4
8.8
9.4

5.4

5.6
7.4
3.1
3.3

18.3
19.8
26.4

0.3
1.7
1.1
2.2

8.1

4.5
4.5

16.4

11.8

5.4
6.0
3.7
3.2
10.8

10.9
9.9
7.0
7.4
8.6
8.8
92
5.2

11.4

12.2
7.7
9.0
6.7
9.4
6.9

11.2

3.2
4.0
3.0
2.8
5.2
4.0
5.7
4.5
4.5
3.9
4.6
7.7
5.2
3.6
4.5
2.7
3.3

TELEPHONE DEVELOPMENT OF LARGE CITIES— (Concluded)
January 1, 1928

Estimated

Population Telephones

Country and City (City or Exchange Number of per 100

(or Exchange Area) Area) Telephones Population

HtJNGART (January 1, 1927):

Budapest 985,000 49,120 5.0

Szegedin 126,000 2,359 1.9

Irish Free State (March 31, 1927):

Dublin 400,000 14,032 3.5

Italy (January 1, 1929):

Milan 831,000 56,315 6.8

Rome 771,000 32,528 4.2

Japan (March 31, 1928):

Kobe 667,000 25,581 3.8

Kyoto 736,000 31,166 4.2

Nagoya 870,000 26,007 3.0

Osaka 2,334,000 90,744 3.9

Tokio 2,218,000 129,548 5.8

Yokohama 537,000 13,398 2.5

Latvia (March 31, 1927):

Riga 343,000 11,215 3.3

Netherlands:

Amsterdam 735,000 41,057 5.6

The Hague 445,000 33,265 7.5

Rotterdam 572,000 35,643 6.2

New Zealand (March 31, 1928):

Auckland 204,000 17,460 8.6

Christchurch 123,000 11,188 9.1

Wellington 128,000 17,167 13.4

Norway (June 30, 1927):

Oslo 252,000 42,609 16.9

Philippine Islands:

Manila 338,000 13,586 4.0

Poland

Warsaw 1,050,000 41,163 3.9

Roumania:

Bucharest 808,000 14,357 1.8

Russia (March 31, 1928):

Leningrad 1,630,000 53,090 3.3

Moscow 2,040,000 65,350 3.2

Odessa 415,000 4,167 1.0

Spain:

Barcelona 761,000 21,267 2.8

Madrid .*. 808,000 23,936 3.0

Seville 216,000 1,926 0.9

Valencia 268,000 4,259 1.6

Sweden:

Goteborg 233,000 31,483 13.5

Malmo 117,000 15,875 13.6

Stockhohn 398,000 114,923 28.9

Switzerland:

Basel 143,000 16,476 11.5

Berne 110,000 13,231 12.0

Geneva 127,000 17,060 13.4

Zurich 218,000 29,077 13.3

United States :t

New York 6,124,000 1,599,915 26.1

Chicago 3,185,000 903,460 28.4

Los Angeles 1,270,000 333,971 26.3

Total of the 8 cities with over

1,000,000 population 18,170,000 4,357,886 24.0

San Francisco 730,000 239,155 32.8

Cincinnati 672,000 154,021 22.9

Milwaukee 655,000 137,303 21.0

Washington 512,000 147,347 28.8

Total of the 11 cities with 500,-

000-1, 000,000 population... 7,363,000 1,495,708 20.3

Minneapolis 482,000 122,279 25.4

Portland, Ore 366,000 92,862 25.4

Seattle 399,000 109,645 27.5

Omaha 231,000 62,179 26.9

Total of the 30 cities with 200,-

000-500,000 population 8,831,000 1,788,069 20.2

Total of the 49 cities with over

200,000 population 34,364,000 7,641,663 22.2

t There are shown, for purposes of comparison with cities in other countries, the total develop-
ment of all cities in the United States in certain population groups and the development of certain
representative cities within each of such groups.

Bell Telephone Quarterly

in the table and chart relating to large cities. Stock-
holm was second, with 28.9 instruments per 100 people.
Washington followed Stockholm very closely with 28.8
telephones per 100 population. New York City had 1,-
599,915 instruments, representing a development of 26.1
for each hundred of its inhabitants. New York City

TELEPHONES PER 100 POPULATION
OF LARGE CITIES

SAN rRANCISCO

STOCKHOLM

WASHINGTON

CHICAGO

OMAHA

TORONTO

LOS ANGELES

NEW YORK

MINNEAPOLIS

PORTLAND, ORE.

CINCINNATI

MONTREAL

OSLO

COPENHAGEN

ZURICH

HAMBURG-ALTONA

HELSINGFORS

BERLIN

PARIS

MUNICH

SYDNEY

AUCKLAND

COLOGNE

HAVANA

LONDON

BRUSSELS

BUENOS AIRES

ROTTERDAM

TOKIO

AMSTERDAM

ANTWERP

VIENNA

MANCHESTER

BUDAPEST

LIVERPOOL

DANZIG

GLASGOW

PRAGUE

BIRMINGHAM

MANILA

OSAKA

WARSAW

DUBLIN

LENINGRAD

MARSEILLES

MOSCOW

MADRID

PEKING

BUCHAREST

SHANGHAI

January 1, 1928

10 15

20

25

30

10 15 20

Telephones per 100 Population

25

30

[228

World's Telephone Statistics

alone had nearly as many telephones as Great Britain,
and more than one-half the number of telephones in
Germany. Chicago, with 903,460 instruments, had
more telephones than all of France. The eleven large
American cities shown in the table had an average de-
velopment of 26.7 telephones per 100 population. With
the exception of Stockliolm, Copenhagen, Oslo and Ot-
tawa, no capital city of a foreign country had a devel-
opment exceeding 15 telephones per 100 population.
In fact, only four large cities in Germany, namely, Ber-
lin, Frankfort-on-Main, Hamburg-Altona, and Stutt-
gart had developments exceeding 10, while Paris, with
10.8 instruments per 100 population, is the only city in
France above that mark. Most of the British cities
are well below a development of 5 telephones per 100
inhabitants, and London with 7.7, is considerably lower
than either Berlin and Paris.

UNITED STATES

CANADA

NEW ZEALAND

DENMARK

SWEDEN

NORWAY

AUSTRIA

AUSTRALIA

NETHERLANDS

SWITZERLAND

JAPAN

GERMANY

GREAT BRITAIN

BELGIUM

FRANCE

CZECHOSLOVAKIA

HUNGARY

TELEPHONE CONVERSATIONS PER CAPITA

Year 1927

10 20 30 40 50 60 70 60 90 100 110 120 l30 140 ISO 160 170 ISO 190 200210 220

10 20 30 40 50 60 70 80 90 100 110 120 130 140 ISO 160 170 180 190 200210 220

Telephone conversations per capita

Comparative Use of the Telephone

The chart, ''Telephone Conversations Per Capita,''
shows that the United States, with 224.7 conversations
per capita in 1927, led the world in the extent to which

[229]

Bell Telephone Quarterly

its telephone service was used by its people. Canada
was second with 221.5 conversations per capita, and
New Zealand third with 178.9. Although the Scandi-
navian countries of Denmark (136.8), Sweden (114.6),
and Norway (76.2) were considerably below the United
States as regards telephone usage, they were well ahead
of the other European countries in this respect. Thus,
in Germany telephone conversations per capita were
only 35.5 during 1927, while the corresponding figures
for Great Britain and France were 28.6 and 17.2, re-
spectively. In other words, the people of the United
States make six times more use of their telephone sys-
tem than the Germans, almost eight times more than the
British and thirteen times more than the French.

[230

Abstracts of Technical Articles From Bell
System Sources

Relation of Nitrogen to Blue Heat Phenomena in
Iron and Dispersion-Hardening in the System Iron-
Nitrogen^ by R. S. Dean, R. O. Day and J. L. Gregg.
It has been generally observed that iron, as an outstand-
ing exception among metals, increases its hardness and
strength by low-temperature annealing after cold work,
and also by increase of testing temperature to the range
of 150° C. to 300° C. This investigation was made with
the object of ascertaining if similar phenomena were
observed in high purity iron, and, if not, to the presence
of which impurities these phenomena could be traced.
After describing the tests made and giving the results,
the authors come to the conclusion that commercial
irons owe their property of hardening by reheating
after cold work, as well as their increase in tensile
strength in the range 100° C. to 300° C, to the solution
of small amounts of iron-nitride present.

Heat Treatment and Meehanical Properties of
Some Copper-zinc and Copper-tin Alloys Containing
Nickel and Silicon,'' by W. C. Ellis and Earle E. Schu-
macher. The addition of nickel and silicon to the cop-
per-zinc and copper-tin systems results in alloys which
can be hardened by heat treatment. The heat treat-
ment, in general, consists of a quench from 800° C.
followed by hardening at 400° C. to 500° C. The dis-
persion hardening effect of nickel and silicon in these
alloys opens a considerable field in the manufacture of
high strength brasses. The mechanical properties in
the rolled condition of the hardened brass containing
30 per cent of zinc and 3 per cent of nickel plus silicon
are in general similar to those of high brass sheet in

1 Mining and Metallurgy, Vol. 10, March, 1929, p. 163 (abstract).

2 Mining and Metallurgy, Vol. 10, March, 1929, p. 162 (abstract).

[231]

Bell Telephone Quarterly

the spring temper. The endurance limit in reversed
flexure for this alloy in the hardened condition is, how-
ever, approximately 20 per cent higher than that of
high brass sheet in the same temper.

A Met alio graphic Study of Tungsten Carhide Al-
loys,^ by J. L. Gregg and C. W. Kiittner. This paper
gives the results of an investigation of the structure of
five of the tungsten-carbon alloys by means of micro-
scopic and X-ray methods, the samples studied being
small tools or wire-drawing dies. After a general dis-
cussion of the constituents of tungsten-carbon alloys,
the preparation of the samples is described, and the
structures found are sho^vn in twenty-one figures ac-
companying the text.

Motion Pictures in Relief/ by Herbert E. Ives. In
this article Dr. Ives describes the method by which
stereoscopic motion picture projection can, theoretic-
ally, at least, be attained. The method is relatively
complicated and has severe practical limitations. It
appears to be theoretically sound and capable of reali-
zation, at least on an experimental scale.

The Absorption of Oxygen hy RtMer/ by G. T.
Kohman. The work reported in this paper was
planned for the pui'pose of determining the part played
by oxygen absorption in the natural aging of rubber.
To do this, the effects of a nimiber of factors known
to influence natural aging on rates of oxygen absorption
were studied. A piece of apparatus, developed for de-
termining these rates, which involves special means for
keeping the oxygen pressure surrounding the sample
constant is described. The results obtained lead to the
conclusion that oxygen absorption is the predominating
factor in the natural aging of rubber and that rates of

8 Mining and Metallurgy, Vol. 10, February, 1929, p. 94 (abstract).
* Journal of the Optical Society of America and Eeview of Scientific
Instruments, Vol. 18, February, 1929, pp. 118-122.

6 Journal of Physical Chemistry, Vol. 33, February, 1929, pp. 226-243.

f 232 1

Abstracts of Technical Articles

oxygen absorption are of value in predicting the nat-
ural life of rubber.

An Electrical Test for Tin Coating on Copper Wire,^
by H. M. Larsen and C. M. Underwood. The method
described is essentially a deplating process. The wire
samples are placed in an acid solution and a current
of suitable value applied to effect the deplating. The
weight of tin on the wire surface and that alloyed with
the copper are determined separately, the measuring
means being two graduated tubes containing electrodes
(sometimes called voltameters). The gas evolved in
these voltameters is proportional to the current and
hence to the tin being removed. As soon as the copper
surface is exposed, an auxiliary electrode in the de-
plating bath actuates a relay which brings into opera-
tion the second voltameter, permitting determination
of the tin alloyed with the copper.

Very simple formulae permit determining the
amount of tin from the volume of gas accumulated in
the two voltameters. The method is said to save time
and permit the use of relatively unskilled operators as
compared with the usual chemical tests applied to tin
coatings.

Further Observations on the Microstructure of
Martensite,^ by Francis F. Lucas. This paper is a
fui^ther contribution by Dr. Lucas on the microstruc-
ture of martensite. It describes a number of quench-
ing and tempering experiments in which commercial
high quality tool steels were used. Representative
structures found in the quenched and various tempered
conditions are illustrated and discussed.

Technique of the Talking Movie, ^ by Donald Mac-
Kenzie. In this article the talking movies are de-

«Wire & Wire Products, Vol. 4, April, 1929, pp. 118-119, 140.

^ Transactions of the American Society for Steel Treating, Vol. 15, Feb-
ruary, 1929, pp. 339-364.

8 Journal of the Western Society of Engineers, Vol. 34, February, 1929,
pp. 95-102.

[ 233 ]

Bell Telephone Quarterly

scribed in some detail as to mechanical features, pro-
duction and exhibition. The author tells some interest-
ing things about producing these pictures and the
human reactions that must be considered in preparing
a picture with sound record so that it will seem natural
and the changes that producers will have to make to
satisfy the public.

Some Long Distance Transmission ProhlemsJ' by H.
Mouradian. This paper discusses the transmission
properties of high voltage power transmission lines
with incidental reference to telephone transmission.
The method of improving the performance of power
lines by means of synchronous condensers at the ends
and at intermediate points is discussed and compared
with a proposed method in which neutralizing networks
are neutralized at intervals. Each network consists of
a pi whose series and shunt elements neutralize the
corresponding elements of the line at the frequency of
transmission. It is stated that the synchronous con-
densers increase the power transfer limits of the line
but decrease the transmission efficiency, while the neut-
ralizing networks increase both the power transfer lim-
its and the efficiency. Illustrative numerical examples
are given for a 220,000-volt line, 500 miles long. Some
possibilities of a transcontinental power transmission
line are discussed.

Electrical Conduction in Textiles. Part II— Al-
ternating Current Conduction,^" by E. J. Murphy.
This paper shows the variation of the equivalent paral-
lel capacity and conductance of cotton and silk with
relative humidity and frequency (for a small range).
It also shows the effect of changes in the amount of
electrolytic material in the textile. The main results
are : At high humidities the capacity is greatly reduced
by a reduction in the amount of electrolytic material

9 Journal of the Franklin Institute, Vol. 207, February, 1929, pp. 165-192.

10 Journal of Physical Chemistry, Vol. 33, February, 1929, pp. 200-215.

[234]

Abstracts of Technical Articles

in the textile. The a.c. and d.c. conductivities of cotton
approach each other as the humidity is increased and
become equal at humidities greater than 80-85 per cent
(that is, dielectric loss is entirely due to direct current
conductivity in this range). At himiidities lower than
this a large part of the dielectric loss is not due to d.c.
conduction, but this part of the dielectric loss is also
strongly affected by the amount of electrolytic material
in the textile. These characteristics can be explained
if the textile is regarded as an electrolytic cell in which
the absorbed water and dissolved salts form the elec-
trolj'te and the solid constituents of the textile act as
a container which determines the volume, geometric
form and specific conductance of the electrolyte. The
capacity at high himiidities is regarded as due chiefly
to the electrolytic polarization capacity of this elec-
trolyte.

Electrical Conduction in Textiles. Part III—
Anomalous Properties,^'^ by E. J. Murphy. This paper
deals with the increase of conductivity with increasing
applied voltage (the Evershed effect), and with the re-
sidual electromotive forces and changes in resistance
produced by the passage of current through the textile.
The results point to the conclusion that the Evershed
effect is due to two factors, a back-e.m.f . due to electro-
lytic polarization, and an increase, caused by the in-
crease in voltage, in the amount to which the ions ad-
sorbed by the interface between the aqueous solutions
and the solid material of the textile contribute to the
total conductivity. The characteristics of the residual
e.m.f. change with humidity; at high humidities the
e.m.f . is apparently caused by chemical changes in the
aqueous solutions due to their electrolysis. It was
found that the passage of a current through a textile
causes its resistance to become non-uniformly distrib-
uted, the distribution depending on the nature of the

11 Journal of Physical Chemistry, Vol. 33, April, 1929, pp. 509-532.

[235]

Bell Telephone Quarterly

electrode material ; this is interpreted as due to changes
in the chemical composition of the solutions in different
parts of the textile. The anomalous properties can be
explained in terms of the electrolytic cell mechanism
suggested in the preceding paper by attributing to the
solid in which the aqueous conducting paths are con-
tained the properties of adsorbing ions and of hinder-
ing the equalization of concentration differences in the
solutions by diffusion. Thus, all of the properties of
conduction in textiles observed in this investigation
can be explained in terms of a single general mechan-
ism which appears to be a probable consequence of the
colloidal structure of the materials.

Study of Welter Brittleness Test for Paper,'^^ by
R. L. Peek, Jr. and J. M. Finch. On the assumption
that paper possesses certain basic properties, an ex-
pression is theoretically obtained relating the results
of the Weller brittleness test to these basic properties,
the dimensions of the sample, and the conditions of
testing. Experimental data are presented which show
that the effect of the sample dimensions and the condi-
tions of testing are substantially as indicated by the
theoretical expression. The theory is then employed
to interpret the results of the test and to indicate the
best form in which these may be expressed. The gen-
eral question of testing for flexibility and brittleness
is considered in the light of this study.

Diffusion of Water through Ruhher,^^ by Earle E.

Schumacher and Lawrence Ferguson. This article
gives data on the diffusion of water through thirteen
rubbers of different compositions. The mathematical
derivation of a simple formula for calculating the rate
of diffusion has been given. The diffusion measure-
ments have shown: (a) that the rate of diffusion of

12 Paper Trade Journal, Vol. 88, February 7, 1929, pp. 56-62.

13 Industrial and Engineering Chemistry, Vol. 21, February 1, 1929, pp.
158-162.

[236]

Abstracts of Technical Articles

water through a rubber membrane is inversely pro-
portional to the square of the thickness; (b) that the
rate of diffusion decreases greatly with increase in
hardness; (c) that the effect of saturating the rubber
with water is to increase the rate of diffusion through
it, due probably not only to an increase in the water
vapor pressure within the rubber, but also to a decrease
in hardness; (d) that there is no intimate relationship
between rate of diffusion and minor variations in the
composition of the rubber.

Effect of Arsenic on Dispersion-hardenaUe Lead-
antimony Alloys'' by K. S. Seljesater. Arsenic has
no solid solubility in lead and is known to form a con-
tinuous series of solid solutions with antimony. There-
fore, immediately after annealing and quenching the
antimony is in solid solution in the lead, and there is a
certain amount of eutectic between the lead-antimony
solid solution and arsenic. After quenching, the lead-
antimony solid solution is supersaturated (the same as
if arsenic were not present) and minute crystals of an-
timony separate. Since arsenic is soluble in antimony,
some of the arsenic present will be concentrated in the
surface layer of the minute antimony particles, which
will then possess surface conditions different from those
of pure antimony particles. The condition of the al-
loy at this stage is analogous to a suspension in a liquid
which has been partly stabilized by a third constituent.
Agglomeration and precipitation will occur, but at a
much slower rate than if the third constituent were
not present. Arsenic, therefore, is to be considered as
a retardant for the agglomeration of minute antimony
particles in the lead matrix. The length of the stabili-
zation tune decreases at elevated temperatures. The
offered explanation is in agreement with the fact that
the increase in hardness is practically independent of
the percentage of arsenic within limits investigated.

"Mining and Metallurgy, Vol. 10, February, 1929, p. 94 (abstract).

[237]

Bell Telephone Quarterly

The addition of a third constituent insoluble in the
solvent and forming a continuous series of solid solu-
tions with the solute, might be of advantage to other
kinds of age-hardenable binary alloys.

A Precision Regulator for Alternating Voltage^^ by
H. M. Stoller and J. R. Power. In this paper a re-
cently developed precision voltage regulator for use
with alternating current is described. It will maintain
its output voltage constant to within 0.03 per cent over
an input voltage range of 10 per cent and a load range
of from zero to full load.

This regulation is accomplished by means of a small
transformer inserted in one of the lines which boosts
or bucks the impressed voltage by the required amount.
The transformer is controlled by a vacuimi tube circuit
acting through an inductance bridge.

An Application of Electron Diffraction to the Study
of Gas Adsorptions^ by L. H. Germer. Under ap-
propriate experimental conditions, electron scattering
by a single crystal of nickel can give rise to diffraction
patterns of four quite distinct types. We attribute
one of these patterns to the space lattice of the nickel
crystal, one to the topmost layer of nickel atoms, one to
a monatomic layer of adsorbed gas atoms, and one to
a thick layer of gas atoms. From these phenomena
some conclusions concerning gas adsorption have been
drawn. We have at hand a new and important method
of crystal analysis.

Magnetic Alloys of Iron, Nickel, and Colalt^' by
G. W. Elmen. Recent investigations of magnetic prop-
erties of alloys of iron, nickel and cobalt have resulted
in the discovery of materials of remarkable magnetic
properties previously unknown. In a brief review,

15 Journal of the A. I. E. E., February, 1929, Vol. 48, pp. 110-113.

"Translated from "Zeitschrift fiir Physik," April 12, 1929, pp. 408-
421. Bell System Technical, July, 1929.

IT Journal of the Franklin Institute, Vol. 207, May, 1929, pp. 583-617.
Bell System Technical Journal, July, 1929.

[ 238 ]

Abstracts of Technical Articles

early experiments that led to the discovery of these ma-
terials and the magnetic properties of the entire field
are discussed. Those groups of alloys of outstanding
scientific and technical importance such as the permal-
loys and the pei-minvars and special heat treatment re-
quired for development of special magnetic properties
are taken up in detail. A theory is suggested to ac-
count for some of the magnetic characteristics, and a
few of the practical applications of these materials are
described.

A Test for Polarization of Electron Waves ly Re-
flection,''^ by C. J. Davisson and L, H. Germer. A hom-
ogeneous beam of electrons is directed at 45° incidence
against a (111) -face of a nickel crystal. The beam
regularly reflected from this face impinges upon a sec-
ond similar face at the same incidence angle. A Fara-
day collector is set to receive electrons regularly re-
flected from the second crystal, but only such electrons
are accepted into the collector as have survived the two
reflections without appreciable loss of kinetic energy.
The collector and second crystal are rigidly joined, and
may be rotated about the axis of the beam proceeding
from the first to the second crystal. Measurements of
the intensity of the twice reflected beam have been
made at bombarding potentials from 10 to 160 volts.
Within this range selective reflections (intensity max-
ima) are observed at 20, 55, 77, 103 and 120 volts.

These fi v e selectively reflected beams have been sep-
arately tested for polarization by measuring the current
received by the collector as a function of the azimuth
of the movable system. If electron waves are polarized
by reflection the intensity of the twice reflected beam
should be greatest when the planes of incidence of the
two reflections coincide, and least when they stand nor-
mal to one another. No such variation of the current
to the collector is observed within the limits of error

isPhys. Kev., Vol. 33, May, 1929, pp. 760-772. Bell System Technical
Journal, July, 1929.

[239]
16

Bell Telephone Quarterly

of the measurements— about one-half of one per cent
of the total current. Our observation is that electron
waves are not polarized by reflection.

A Generalization of Heaviside's Expansion The-
orem,''^ by W. O. Pennell. The expansion theorem is
one of the most frequently used methods of evaluating
operational forms arising from the operational calcu-
lus, developed by Heaviside. The original theorem,
however, is applicable, in general, only to expressions
containing integral powers of the operator d/dt. This
paper describes an extension to, or a generalization of
the original expansion theorem whereby, in general,
operational forms with either fractional or integral
powers of the operator can be evaluated. A number
of operational equivalents are given to be used with the
theorem, one of which is the equivalent used by Heavi-
side. Examples of the application of the theorem to
electric circuit problems are shown.

A High Precision Standard of Frequency,'"' by W.
A. Harrison. A new standard of frequency is de-
scribed in which three 100,000-cycle quartz crystal-con-
trolled oscillators of very high constancy are employed.
These are interchecked automatically and continuously
mth a precision of about one part in one hundred mil-
lion. They are checked daily in terms of radio time
signals by the usual method employing a clock con-
trolled by current maintained at a submultiple of the
crystal frequency. Specially shaped crystals are used
which have been adjusted to have temperature coeffi-
cients less than 0.0001 per cent per degree C.

Observations on Modes of Vibration and Tempera-
ture Coefficients of Quartz Crystal Plates,''^ by F. R.
Lack. The characteristics of piezo-electric quartz

19 Bell System Technical Journal, July, 1929.

20 Bell System Technical Journal, July, 1929; presented before Institute.
of Eadio Engineers, April 3, 1929.

21 Bell System Technical Journal, July, 1929 ; presented April 3, 1929,
before Institute of Eadio Engineers.

[2401

Abstracts of Technical Articles

crystal plates of the perpendicular or Curie cut are
compared with parallel or 30-degree cut plates with ref-
erence to the type of vibration of the most active modes,
the frequency of these modes as a function of the di-
mensions, and the magnitude and sign of the tempera-
ture coefficients of these frequencies.

It is pointed out that the two principal modes of the
perpendicular cut plate appear to be of the longitudinal
type, the high-frequency mode being a function of the
thickness while the low-frequency mode is a function
of the width (along the electric axis). Both modes
have a negative temperature coefficient of frequency.
Of the two corresponding modes of the parallel cut
plates a shear vibration is responsible for the high fre-
quency. This frequency has a positive temperature co-
efficient. The low-frequency mode is of the longitu-
dinal type and has a negative temperature coefficient.

Considering only the high-frequency vibration of
these plates it is observed that there are characteristic
variations of the frequency and temperature coefficient
with the ratio of dimensions of the plate and the tem-
perature, which are peculiar to the parallel cut plate.
These variations can be attributed to a coupling of the
shear and longitudinal modes.

It is then shown that if the parallel cut plate be
treated as a group of coupled oscillatory systems with
appropriate temperature coefficients the usual coupled
system analysis will explain the curves of frequency
vs. dimensional ratio, frequency vs. temperature, and
temperature coefficient vs. dimensional ratio that are
characteristic of this plate. This analysis offers an ex-
planation of the low temperature coefficients which can
be produced by a proper choice of the dimensional
ratios.

Master Reference System for Telephone Transmis-
sion,^^ by W. H. Martin and C. H. G. Gray. The tele-

22 Bell System Technical Journal, July, 1929 ; presented before A. I. E. E.
Summer Convention, June 24-28, 1929.

[ 241 ] ,

Bell Telephone Quarterly

phone transmission system described here is the Master
Eeference System of the Bell System for the expres-
sion of transmission standards and the ratings of the
tranmission performance of telephone circuits. The
transmitter and receiver elements of this system are
reference standards for the ratings of the transmitting
and receiving performance of terminal station sets.

A replica of this reference system, installed in Paris,
has been adopted as the Master Reference System of
the International Advisory Committee on Long Dis-
tance Telephone Conmiunication in Europe. The es-
tablishment of these two master systems provides a
common reference for the telephone transmission work
of the Bell System and the telephone administrations
which are members of this International Advisory
Committee.

Shielding in Eigh-Frequency Measurements,^^ by
John G. Ferguson. The purpose and usefulness of
shielding in high-frequency measurements are outlined.
General ]3rinciples of electrostatic shielding are devel-
oped as applied to simple impedances and to networks
of impedances, particularly to bridge networks. Prac-
tical applications of these principles to the shielding
of adjustable impedances, and in the construction of
actual bridge circuits are described.

Fatigue Studies of N on-Ferrous Sheet Metals; '* by
John R. Townsend and Charles H. Greenall. The
paper describes the development of a fatigue test ma-
chine for sheet metals and gives results of fatigue tests
on five alloys of alpha brass, one alloy of nickel silver,
one alloy of phosphor bronze and Everdur.

The results indicate that cold work raises the en-

23 Bell System Technical Journal, July, 1929 ; presented before the A.
I. E. E. Summer Convention, June 24-28, 1929.

24 Bell System Technical Journal, July, 1929; presented before American
Society of Testing Materials Convention, June 24-28, 1929.

[242]

Abstracts of TecJmical Articles

durance limit but not proportionally to the increase
in tensile strength produced by the same cause.

Micrographs are shown indicating that fatigue fail-
ure of the metals investigated is transcrystalline.

Dispersion hardening of alpha brass by nickel sil-
icide increases the endurance limit.

The ratio of endurance limit to ultimate tensile
strength of these alloys varies from .12 to .36 depending
on composition, heat treatment, and cold work. These
ratios are much lower than similar ratios for steel.

[243]

Notes on Recent Occurrences

A T AND T. CO. BONDS OFFERED TO
STOCKHOLDERS

AT a special meeting of the stockholders of the
American Telephone and Telegraph Company
held on April 30, the directors were given power to au-
thorize the issue of not exceeding $225,000,000 of con-
vertible bonds, the stockholders to be offered the right
to subscribe for the bonds at their face value in the
proportion of $100 of bonds for each six shares of

stock held.

Following the meeting of the stockholders, the direc-
tors authorized the issue of Ten-Year Convertible Ah%
Gold Debenture Bonds of the Company to be dated
July 1, 1929, and the stockliolders of record at the close
of business on May 10, 1929 were mailed subscription
rights. The amount thus offered is approximately
$219,000,000.

The purpose of the issue is to provide funds for the
payment of approximately $75,000,000 of the Collateral
Trust Four Per Cent. Bonds of the Company due July
1, 1929 and for new construction which is required by
the Bell System to care for additional business result-
ing from the continuously increasing use of telephone
service.

The bonds are convertible into the stock of the Com-
pany on January 1, 1930 or at any time thereafter, but
not later than December 31, 1937, but if called for re-
demption on any date within that period they may be
converted not later than their redemption date.

The conversion price is, during the year 1930— $180
per share; during the years 1931 and 1932— $190 per
share; and during the years 1933 to 1937, inckisive,—
$200 per share. These prices are subject to reduction
upon the issue from time to time of additional stock

[2441

Notes on Recent Occurrences

by the Company, all as stated in the Indenture under
which the bonds are issued.

In their conversion the bondholder may take one
share of stock for each $100 of bonds surrendered, on
paying in cash for each share, the difference between
the conversion price then in effect and $100; or, the
bondholder may take as many shares of stock as the
principal amount of bonds surrendered will pay for
at the conversion price then in effect, and if there is a
remainder, the bondholder may take one additional
share on paying in cash the difference between the cur-
rent conversion price of a share and such remainder.

At the time bonds are surrendered for conversion
an adjustment in cash must be made of accrued interest
and dividends.

The bonds will be redeemable upon sixty days^ pub-
lished notice. If prior to January 1, 1938, the redemp-
tion price is 105, and if on or after January 1, 1938,
the redemption price is 100. Redemption of less than
all of the bonds must be on an inter est-pajment date.

The issue has not been underwritten.

H. P. CHARLESWORTH MADE CHAIRMAN OF
N. Y. SECTION, A. I. E. E.

AT the Annual Meeting of the New York Section of
the American Institute of Electrical Engineers,
April 26, announcement was made of the election of
H. P. Charlesworth, Vice President of the Bell Tele-
phone Laboratories, as Section Chaii'man for the com-
ing year. The New York Section, with a membership
of about four thousand in the metropolitan district, is
the largest of the A. I. E. E. sections.

[245]

Bell Telephone Quarterly

TWO-WAY TALK BETWEEN TELEPHONE
AND FLYING AIRPLANE DEMON-
STRATED BY BELL SYSTEM

A DEMONSTRATION of two-way telephone com-
munication between an airplane in flight and tel-
ephones connected to the ordinary land lines of the
Bell System took place on May 1. Reporters of the
metropolitan press, flying in the Bell Telephone Lab-
oratories' airplane over northern New Jersey, con-
versed with the men at the city desks of their respective
newspapers in New York. The conversations were
easily understood and the experiment was highly suc-
cessful in spite of rather unfavorable weather condi-
tions.

Each reporter in turn, seated in the " flying tele-
phone booth " in the Wasp-motored Fairchild cabin
monoplane, was equipped with headphones and spoke
into a hand microphone with soft rubber sides to be
pressed against his face, thus shutting out the noise of
the airplane. The calls were transmitted via the Bell
Telephone Laboratories' experimental radio station at
Whippany, N. J., where connection was made with the
ordinary telephone lines to the destination of the call.
The radio telephone set used in the demonstration is
extremely compact, weighing only about one hundred
pounds.

GENERAL PUBLICITY CONFERENCE

A GENERAL Publicity Conference, attended by
publicity representatives of the BeU System, was
held at Pinehurst, N. C, from April 10 to 17. Vice
President Arthur W. Page, of the American Telephone
and Telegraph Company, who presided at the confer-
ence, opened the sessions with a discussion of " The
Problem of Forecasting Public Opinion in the United
States."

The following papers were presented : ' ' The Merger

[2461

Notes on Recent Occurrences

Movement," S. L. Andrew, Chief Statistician, A. T. &
T. Company; " The Future of the Bell System " (with
special reference to prospective service improvements) ,
Bancroft Gherardi, Vice President, A. T. & T. Com-
j)any; " Results of Effort to Develop Understanding
of Bell System Policy and What Should Be Done to
Perpetuate This Understanding," W. B. Clarkson, As-
sistant to President, Chesapeake & Potomac Telephone
Company; " The Opportunity that Publicity Has to
Develop a Sales Consciousness and to Promote Sales,"
F. J. Eeagan, Vice President, Pacific Telephone & Tel-
egraph Company; " Publicity Functions and Type of
Organization Required to Perform Them," H. C.
Young, Vice President, Bell Telephone Company of
Pennsylvania; " The Selection and Development of
Personnel for Publicity Work," L. C. Whitcher, Gen-
eral Publicity Manager, New York Telephone Com-
pany; '' How Can Publicity Assist in Meeting our Re-
sponsibility to the Rural Telephone User'? " F. C.
Builta, Assistant to President, Northwestern Bell Tel-
ephone Company; " Tangible and Intangible Results
of Publicity; What Can Be Measured and How," P.
L. Schauble, General Information Manager, Bell Tel-
ephone Company of Pennsylvania; " Need for Signs
on Buildings, Public Telephones and Roads in Metro-
politan and Rural. Areas and Value of Standardized
Signs," T. J. Feeney, Assistant to President, New Eng-
land Telephone & Telegraph Company; " Foreign Lan-
guage Newspaper Advertising ; Its Value and Place in
an Advertising Program," A. F. Hardman, Assistant to
Vice President, Ohio Bell Telephone Company; '' The
Relationship between Business and the Press," Eveljm
Harris, General Publicity Manager, Southern Bell
Telephone & Telegraph Company; '* Sound Pictures—
A New Publicity Mediiun," H. G. Stokes, Motion Pic-
ture Director, A. T. & T. Company. Mr. Stokes' talk
was illustrated by means of the new portable sound
projector developed by the Bell Telephone Laboratories

[247]

Bell Telephone Quarterly

and the Western Electric Company, Inc. for Electrical
Research Products, Inc.

The conference was also addressed informally by
President W. S. Gifford and Vice President N. T.
Guernsey, of the American Telephone and Telegraph
Company.

On the last day of the conference, B. V. Flannery
of N. W. Ayer and Son, advertising agency of Phila-
delphia, spoke on " Effective Newspaper Layout " and
P. Lewis, also of N. W. Ayer and Son, on '' Copy."
After the sessions at Pinehurst several members of
the conference were the guests of N. W. Ayer and Son
for a day in Philadelphia.

1929 OPERATING CONFERENCE

THE seventh Operating Conference, held at Wliite
Sulphur Springs, West Virginia, from May 1st
to 8th, was attended by the Operating Vice Presidents
and General Managers of the Associated Companies
and representatives of the staff of the American Tele-
phone and Telegraph Company.

At the start of the conference Mr. Gherardi pre-
sented a very comprehensive review of the operating
results and trends of the business. This review in-
cluded consideration of the financial, engineering,
plant, traffic and conmiercial performance for 1928, the
background for the estimates and forecasts for the five-
year period, and the material and equipment supply
situation. Mr. Gherardi also discussed the matter of
efficiency in operation, the opportunities for new serv-
ices, some organization and personnel matters and the
developing and maintaining of a proper attitude of
mind toward the business and toward customers. This
survey showed clearly that steady progress is being
made toward an efficient service and a service more
pleasing to the public and that the outlook for the fu-
ture is definitely in the direction of continued improve-
ment.

[248 1

Notes on Recent Occurrences

A large part of the discussions of the conference was
based on the reports of a number of special committees
which were selected early in the year to report on mat-
ters of particular moment at this time. The subjects
of these committee reports are given below as they are
of general interest as indicating the lines along which
special emphasis is being placed :

Sales Program and Organization
Promoting Toll Use

Party Lines and Their Effect on Service
Service Outside the Base Rate Area and Rural Service
Private Branch Exchange Service and Operation
How Can Management Discover and Remove Causes for Com-
plaints and the Failure to Satisfy Customers' Requests?
Installation of Service — Appointment Plan
Collection Methods and Denial of Service
Commercial Department Service and Business Office Operation
Supervisors' Training— Development of the Administrative
Personnel

The conference was addressed by Mr. Cooper, Mr.
Page, Dr. Jewett and Mr. Bloom. Mr. Charlesworth
outlined the work being done by the Bell Telephone
Laboratories, and in connection with his talk, arranged
an interesting demonstration of wireless telephone com-
munication with airplanes.

1929 ENGINEERING CONFERENCE

The Engineering Conference held at Sha^^mee-on-
Delaware, Pennsylvania, from June 5th to 12th, was
attended by the Chief Engineers, representatives of the
general staffs of certain Associated Companies, repre-
sentatives from the Northern Electric Company, the
Western Electric Company, the Bell Telephone Lab-
oratories and the general departments of the A. T. & T.
Company, the total attendance being about 130. Al-
though each of the previous five meetings of the Chief
Engineers had been held jointly with the other oper-
ating departments, the increase in the mmiber of oper-
ating areas made a separate conference necessary.

[249]

Bell Telephone Quarterly

At the beginning of tlie conference Mr. Glierardi
presented a comprehensive review of the operating re-
sults and trends of the business which gave the confer-
ence members a very clear picture of the financial, en-
gineering, plant, traffic and commercial results for 1928,
together with the background of estimates, forecasts
and trends for the five-year period.

The first general subject, that of Provisional Esti-
mates and the Material Supply Situation, was covered
by a group of papers dealing with Provisional Esti-
mates and Estimating, Western Electric Expansion
Program, and the Material Supply Situation, also a
report of a committee of Chief Engineers discussing
the Forecasting of Material Requirements.

A large part of the program was devoted to addi-
tional reports of committees of Chief Engineers organ-
ized prior to the conference to study some of the prob-
lems which are of particular interest to the Chief
Engineers at this time. These reports were generally
followed by open discussions in which members of the
conference generally participated. The subjects of the
reports which indicate those phases of the engineering
work which are of particular importance at this time
are as follows:

Toll Facilities and Associated Problems

Plant Extension Engineering

Appearance of Plant

Building Activities

Rural Service and Small Exchange Problems

Station and Related Activities

Transmission Activities

Foreign Wire Relations

Papers also were presented dealing with Communica-
tion Services for Power Companies and Depreciation
Activities.

Talks of especial interest were given by Mr. Page,
Mr. Waterson, Mr. Colpitts, Mr. Charlesworth, Mr.
Wilson and Mr. Harrison, Chairman of the Conference.

[250]

Notes on Recent Occurrences

Throughout the conference, the coordination of sales
efforts, the construction program inchiding the material
supply situation, and financial results so as to obtain
a balanced result, was stressed as being the most im-
portant problem before Chief Engineers in the next
two or three years. From a technical standpoint, or-
ganizing, planning and engineering for the large toll
program which is ahead was of major importance.

Some of the more recent developments in equip-
ment, labor saving machinery, material, methods and
practices were exhibited. There was also an interest-
ing display of building photographs illustrating the
great improvement in the appearance of the newer
buildings in the Bell System.

At an evening session an interesting demonstration
was given by Mr. Jones of the latest development in
soimd pictures. Moving pictures also were shown by
Messrs. Hull and Mier of the construction methods em-
ployed in Texas and Oklahoma in connection with new
tjTpes of buried cables.

NEW SHORT-WAVE TELEPHONE TRANS-
MITTING CENTER OPENS AT LAW-
RENCEVILLE, N. J.

ON June 1 the American Telephone and Telegraph
Company's new short-wave radio telephone trans-
mitting center at Lawrenceville, N. J., began conmier-
cial operation.

By the end of the year it is expected that the
transmitters of two additional short-wave channels to
Europe, and one to Buenos Aires, Ai'gentina, will be
operating from this point. The present short-wave
transmitter at Deal, N. J., will then be taken out of
commercial operation, to be used thereafter for experi-
mental purposes.

Providing a third transatlantic speech channel, the
new short-wave unit supplements the long-wave and
short-wave systems previously operating between the

[251]

Bell Telephone Quarterly

United States and Europe, which were becoming con-
gested with traffic.

As the result of months of experiment and testing
by engineers of the A. T. and T. Company and the Bell
Telephone Laboratories, Inc., the sending equipment
at Lawrenceville presents a number of improvements
over that in the older short-wave system. The trans-
mitting antennae for Europe are strung on a line of
nineteen 180 foot steel towers, placed 250 feet apart
and at right angles to the direction the voice waves
travel. Each of the three transatlantic channels has
three horizontal aerials, paralleling each other perpen-
dicularly, connected by cross wires; they resemble a
huge wire net of irregular mesh.

Behind the transmitting antenna is a second, sim-
ilar arrangement, designed to reflect the voice waves
from the transmitting antenna, and to reinforce them.
As the equipment is directional, the energy is thus fo-
cussed toward the point it is to reach. At the same
time, each antenna can transmit on three different wave
lengths, so that when all the channels are completed
they will be able to operate simultaneously without in-
terfering with each other.

ACADEMIC HONORS FOR A. T. AND T. CO.
OFFICIALS

On June 10th, President Walter S. Gifford received
from Colgate University the honorary degree of Doctor
of Laws. Oberlin College conferred upon Mr. Gifford
the honorary degree of Doctor of Science on June 18th.

Vice President F. B. Jewett received the honorary
degree of Doctor of Science from the University of
Chicago on June 11th.

On June 18th, H. B. Thayer, former President, re-
ceived from Dartmouth College the honorary degree of
Doctor of Laws.

[ 252 ]

z ^

r^ S

s:

E -<

Bell Telephone Quarterly

A MEDIUM OF SUGGESTION
AND A RECORD OF PROGRESS

Published quarterly for the Bell System by the American Telephone
and Telegraph Company

Subtcrlptlon, $1.50 per year, in United Slate* and Canada; *ingle copie; SO centt

Address all communications to

INFORMATION DEPARTMENT

AMERICAN TELEPHONE AND TELEGRAPH COMPANY

195 Broadway, New York

Vol. VIII OCTOBER, 1929 No. 4

Short Waves and Long Waves in
Transatlantic Radio Telephony

THE various points on the two sides of the At-
lantic which can now be interconnected by the
transatlantic radio telephone system have been
added so gradually that the magnitude to which the
total network has grown may not be generally appre-
ciated. On January 1, 1929, there were over seven mil-
lion telephones in Europe and nearly twenty-one mil-
lion in North America to which transatlantic service
was available. The total, twenty-eight million, repre-
sents 85 per cent of the telephones in the world. It is
inevitable that with such a field to draw from the traffic
across the Atlantic should grow vigorously and the need
for further telephone links to care for this traffic soon
become acute. A telephone cable to provide a circuit
of maximum reliability is now being engineered and
other radio links are being considered. The type of
radio facilities best adapted to meet this need is a prob-
lem requiring careful engineering consideration along
several lines.

A transatlanti'C radiotelephone circuit is made up of
two one-way radio paths or channels for speech trans-

[353]
17

Bell Telephone Quarterly

mission, one transmitting from New York to London
and the other transmitting from London to New York.
Taken together, these two oppositely directed, one-way
channels form a ''radio circuit" for two-way speech
transmission. At each terminal the incoming and the
outgoing radio paths must form a junction with the
wire terminal system so as to operate properly with the
two-way speech path represented by the single pair of
wires extending to the subscriber's telephone instru-
ment. This is done through the agency of an automatic
switching device which, in response to the voice current
coming from the subscriber's instrument, connects
either the incoming or the outgoing radio path to the
wire terminal circuit, in accordance with the flow of
conversation back and forth, between the two talkers.
This junction apparatus or system is the same no mat-
ter what type of radio facility is employed in setting up
the pairs of channels which link the two junction points.
Thus, the choice of radio facilities has been to a large
extent divorced from matters of interconnecting these
facilities with wire lines.

There are two classes of radio waves capable of
traveling long distances and, therefore, suitable for set-
ting up transoceanic radio links. These are: long
waves, which may be assumed to include radio fre-
quencies from about 40 kc. to 100 kc. and short waves,
which may be assumed to include radio frequencies
from about 5,000 kc. to 20,000 kc. The radio fre-
quencies or wave lengths lying between these two classes
of waves are suitable for shorter distance transmission
and are used for ship-to-shore telegi'aphy, broadcasting
and similar services. The first transatlantic circuit,
opened in 1927, was a long-wave circuit. The traffic on
it grew to the point where another circuit was needed
and, in June, 1928, a short-wave circuit was opened for
service. Experience with these two circuits, represent-
ing the two wave classes available for the purpose, fur-
nishes a basis for comparative discussion. The first

[254]

Waves in Transatlantic Radio Telephony

question which might naturally arise is, which one of
these two types of circuit is better adapted to trans-
atlantic radiotelephone service? The answer is, both.
The two types have different characteristics. They
tend to supplement each other rather than to compete
with each ofiier.

There is less difference in the simple transmission
efficiency of long and short waves than one might be led
to expect by the newspaper reports of long distances
often spanned by amateurs using low power short-wave
transmitters. A given amount of power radiated to-
ward a distant receiving station under normal condi-
tions produces approximately the same order of re-
ceived signal strength whether the wave be long or
short. There are, however, great differences in the
variations in transmission efficiency to which the two
classes of waves are subject. Long waves undergo a
diurnal variation, signals being stronger at night and
weaker by day, but, provided there is reasonably suffi-
cient transmitting power, some signal is always re-
ceived except for a brief interval at sunset. The work-
ability of the radio link is governed by the amount of
noise present to mask or obscure the signal ; the way in
which this noise varies and the eifectiveness of the
means used to suppress it govern the results obtained.

A short wave of a given wave length or frequency
has good transmission efficiency during only a portion
of the day. At other times of the day the efficiency
may be so low that substantially no signal can be re-
ceived. Fortunately, different short-wave lengths
have their best transmission at different times of day
and it is possible to choose three wave lengths, at least
one of which will, under average conditions, be good
at any given time. Radio noise is a factor, but one
of a lesser order than is the case with long waves.
There are two other types of variation which also affect
short waves but which are substantially absent with
long waves. These are: fading, or relatively rapid,

[255]

Bell Telephone Quarter^

moment to moment variations in the strength of re-
received signals, and ''wash out" periods, when, for
one or more days transmission may be very poor and
signals extremely weak. Wash out periods usually are
associated with magnetic storms. During magnetic
storms the transmission efficiency of short waves is fre-
quently reduced to the point where communication is
impossible until the storm has passed. These three
kinds of variations to which short waves are subject are
a di'awback to their effective use and constitute the
transmission problem against which research is now
being directed.

One of the prime requirements for telephone service
is reliability. Neither the long wave nor the short
wave transatlantic circuits give usable results 100 per
cent, of the time. With the present apparatus, the
long wave circuit is somewhat more reliable than the
short wave, but both will be improved as improvements
in the apparatus are made and experience is obtained
with their operation. Aside from the '* sunset dip "
poor transmission times on long waves are in general
due to excessive noise or static. Poor times on short
waves are more often due to weak signals, fading, or
magnetic storms. Since the causes in the two cases are
different, the likeliliood of simultaneous incidence of
bad periods on the two wave classes is reduced. This
is particularly true, for instance, of the interruptions
accompanying magnetic storms, which wipe out short-
wave transmission but actually improve long-wave
transmission. Thus the combination of a short-wave
circuit and a long-wave circuit gives a greater assur-
ance of continuous service than can either type of
circuit alone. Whether either type can be brought to
a point of reliability sufficient to enable it to furnish
continuous service by itself remains for the future to
disclose.

Lying, as they do, at opposite ends of the radio fre-
quency spectrimi it is not strange that long waves and

[256]

Waves in Transatlantic Radio Telephony

short waves employ rather diiferent types of plant.
For receiving, both use directive antenna systems to
increase signal and decrease noise but these systems
are of quite different construction. Long- wave receiv-
ing apparatus is similar in many ways to wire carrier
telephone equipment. Short-wave receiving appa-
ratus even at its present stage of development involves
special devices to combat radio transmission variations
and further developments will undoubtedly bring forth
many auxiliary devices for this purpose.

For transmitting, long waves require a large and
costly antenna to radiate effectively. With present
types of antenna, since the radiation goes out in all
directions, and only a small part of it travels toward
the receiving station, a very powerful transmitter is
necessary to produce a sufficient received signal. For
short weaves, an individual antenna is relatively much
smaller and it is possible to combine antennas into ar-
rays which direct the radiation into a small geograph-
ical sector. The radiated power is thus used much
more effectively and a smaller transmitter will suffice.
However, three separate antenna structures must be
built to handle the three different wave lengths.

The difference just pointed out between the relatively
enormous size of a long-wave antenna and the diminu-
tive size of a single short-wave antenna discloses one
reason why experimenters are able to obtain much bet-
ter long-distance transmission with short than with
long waves. A few dollars will buy a short-wave
antenna which will compare favorably in simple radia-
tion efficiency w^ith a long-wave antenna costing many
thousands of dollars. Thus, an efficient long- wave
antenna is denied the average experimenter and we do
not hear of long-distance records of transmission being
made by experimenters wdth low-power long-wave sets.
When reliable commercial results are required, the ex-
pansion of the short-wave antenna into an array and
the provision of a number of these arrays to cover the

[257]

Bell Telephone Quarterly

several wave lengths to be used make the comparison
an entirely different sort of thing.

Long-wave systems are more expensive to build and
operate than short-wave systems. But considerations
of continuity of service must weigh heavily in modify-
ing cost comparisons. Both types of system appear
necessary to a well-rounded service.

The preceding remarks apply to transatlantic radio
telephone links between United States and England.
This route is particularly favorable to the use of long
waves since the distance is moderate and the path
largely over water, and since the main sources of static
are in directions which permit realization of large im-
provements from directive antennas. For such a route
as from United States to South America, where the dis-
tance is greater, and where the receiving antennas must
look directly toward equatorial regions which are major
sources of static, long waves can be of little value and
short waves must be relied upon.

Ralph Bown.

[258 J

The Straight-Line Depreciation Account-
ing Practice of Telephone Companies
in the United States

(Paper presented to International Congress on Ac-
counting, Netv York, September 9-14, 1929.)

WHEN the telephone business originated, a little
over fifty years ago, electrical science was in
its infancy.

There was no accumulated knowledge or experience
to which the telephone engineer could have recourse;
indeed there was no such person as an electrical engi-
neer as we use the term today. There was no college
which taught electrical engineering. There were no
electric power lines, no trolley cars.

The telephone was not an improvement upon some-
thing previously existing— it was wholly new and
strange. When the instruments were made commer-
cially available, the whole science and art of telephony
was still to be created. There was no switchboard, no
signalling apparatus, no knowledge regarding the tele-
phone line circuit or indeed of any of the facts that
have since been found needed to make the telephone a
reliably useful thing.

Everything had to be worked out and energetic re-
search and development work brought a continuous
flow of inventions. Equipment which had been the
best yesterday was today dethroned by something later
and better.

In addition to rapid advances in the art affecting all
parts of the investment, telephone plants in the open
were partially destroyed by storms or other casualties.
The great enemy of the outdoor plant proved to be the
sleet storm.

The early telephone wire lines in cities, which were
almost exclusively aerial, soon became unsightly and

[259]

Bell Telephone Quarterly

inconvenient and as the size of the plants increased
public convenience and necessity were served by the
progressive substitution of aerial cables for open wires
and later by the introduction of underground conduits
and cables which removed many of the lines from sight
altogether.

Early Eecognition of DErRECiATioN by Telephone

Men

Telephone men were thus early brought to a realiza-
tion that the maintenance cost of providing telephone
service included something more than the day-to-day
upkeep of the property ; it included the cost occasioned
by the using up of major portions of the property.

The first circular recommending a system of tele-
phone accounts was sent out by the American Bell Com-
pany to its various local licensee companies throughout
the country in 1884. Written at a time when deprecia-
tion accounting had generally received but scant atten-
tion in the business and industrial concerns of America,
this circular clearly recognized depreciation as a cost
of operation. It said, in part :

... It is certain that the present expense for Repairs and
Reconstruction is not proportionate to the actual deterioration of
property and that in future years the revenue of most companies
will be subjected to much heavier charges on this account. It is
suggested that a reserve fund be set apart, to which shall be carried
such part of the annual profits as represents the estimated amount
of yearly depreciation not covered by the expenditure on account
of Repairs and Reconstruction.

A depreciation rate of 10% was suggested in this
circular as a reasonable composite rate for all classes of
telephone property taken together.

Neglect of depreciation was one of the historical
causes of financial disaster to many of the smaller tele-
phone companies in the United States and the ability of
the companies of the Bell System and various of the in-
dependent companies to maintain themselves is un-

[260]

Fig. 1. Broadway and Jolui Street, New York Citv, ISitO

Straight-Line Depreciation Accounting Practice

doubtedly traceable in part to a better perception of tbe
nature of depreciation in the oj^erating property.

Present Accounting

About the years 1908 to 1910 the Bell Companies
generally were making provision for depreciation by
charging operating expenses with the difference be-
tween ((x) the amount of depreciation expense com-
puted by the application to the property in use during
the year of the current depreciation rates and (&) the
amount of depreciation overcome by that year's recon-
struction. Since that time, the general practice has
been to charge operating expense and credit deprecia-
tion reserve with the full amount of the accruing de-
preciation for the year and to charge against the ac-
cumulated reserve the losses on property retired; all
depreciation transactions being thus mirrored by the
reserve.

In 1912, the Interstate Commerce Commission
promulgated a Uniform System of Accounts, man-
datory for use after December 31st of that year by all
of the larger telephone companies throughout the
United States. The mandatory system (still in effect)
required the use of depreciation reserve accounting and
assigned depreciation to the operating expenses as
a branch of Maintenance; the annual depreciation
charges against earnings to be in such amounts as
should distribute, as nearly as may be, evenly through-
out the service life of the property, the cost of property
consumed in operations. This is accomplished by the
' ' Straight-Line ' ' method.

The formal recognition of depreciation as an operat-
ing expense by the government authorities was very
satisfactory to the telephone accountants at the time,
for in view of the characteristics of the telephone busi-
ness, they regarded— as indeed they still do— a sound
method of depreciation accounting as imperative for it.

The universal agreement on this point among both

[261]

Bell Telephoyie Quarterly

Bell and independent telephone companies and the
government experts is significant.

Characteristics of Depreciable Telephone Property

Some of the characteristics of the telephone busi-
ness of importance in this relation are :

Growth

The business has increased in a half century amaz-
ingly. Beginning with a few hundred thousand dollars

FLUCTUATION OF RETIREMENTS

FOR A LARGE TELEPHONE COMPANY

IN THE UNITED STATES

NET CHARGES TO RESERVE TOR
ACCRUED DEPRECIATION

•3.500

Fig. 4

in 1878, the Bell Companies had in 1917 plants which
had a first cost of over one billion dollars. From 1917
to 1923 another billion dollars was added, as net prop-

[262]

9"=

^, "^ *^ >'

% ^ ^ -"* ' '#^ ^ ' ,^"

>c

Straight-Line Depreciation Accounting Practice

erty additions. At present these companies have more
than three and a quarter billions of dollars of telephone
property and the four billion mark will be passed
shortly after the close of this decade. The telephone
companies not comprised in the Bell System also have
very considerable growing property investments.

Short Service Life

Due to wear and tear, changes in the art, storms and
casualties, public requirements and above all to inade-
quacy due to growth of the service, most telephone plant
has a relatively short service life; the average com-
posite life of the plant as a whole, excluding under-
groimd conduit, being less than fifteen years.

Fluctuation in Retirements

Retirements are by no means imif orm from year to
year. They fluctuate over a wide range, not merely for
the individual classes of plant, but for all of the classes
taken together. The annual fluctuations are so serious
that if the net retirement charges for the year were
taken into the operating expenses in lieu of the proper
depreciation accrual, these expenses— in addition to
seriously understating the true expense of depreciation
—would be highly irregular.

Location of Property

A large percentage of telephone i3roperty is placed
upon premises not under the control of the telephone
company, such as public buildings, highways and alleys
and the premises of its individual subscribers. This
property is subject to the changing conditions affecting
such public or private property, as well as to ordinary
depreciation hazards.

With these special characteristics of the telephone
business in view, the suitability of the straight-line
method will be apparent probably to most accountants.
But not everyone is an accountant and it has frequently

[263]

Bell Telephone Quarterly

been necessary to explain and to defend the funda-
mental soundness of the depreciation rules of telephone
companies.

The Theory of "Straight-Line" Telephone
Depreciation

The Bell System's position in respect of straight-
line depreciation accounting admits of very simple
statement.

The operating expenses to be entire must reflect the
cost of all of the things purchased and used up in con-
ducting the operations. This includes the cost of some
things which are used up at once or in a short time, such
as operating labor, lunch room supplies, coal or sta-
tionery ; and of other things which are used up slowly,
such as tools, furniture, automobiles, poles and switch-
boards. The ultimate cost of a service must include the
cost of everything used up in furnishing it, and if a
telephone company in the rendition of its telephone
service uses up any property, then the cost of that
property is necessarily a part of the cost of that service.

The function of the accounts is to record the facts as
to the transactions of the company. Any item of
operating cost is an operating expense. If any item of
such cost is omitted from the operating expenses they
will not reflect the facts. Granting that the cost of
property used up is operating expense, the next ques-
tion which presents itself is as to the time when the
expense should be charged in the accounts. It is a
fundamental rule of accounting that charges for ex-
pense should be made to the accomits of the period to
which the expense relates and for the benefit of which it
has been incurred. The expense of depreciation is in-
curred within the period when the property is being
employed to render the service. It should therefore be
charged to operating expenses within that period.

In the case of depreciable property of long life, the
books must be opened and closed many times during the

[264]

Straight-Line Depreciation Accounting Practice

life term and so the further problem arises as to how
the accounts of each period can be made to provide
equitably for the cost of the property which is being
consumed. The straight-line method meets this prob-
lem simply, effectively and equitably. The company
charges off against its revenues the actual net capital
loss and only that loss, as nearly as it may be deter-
mined, and it charges to the operating expenses of any
period only that proportion of the loss which is meas-
ured by the length of that period as related to the length
of the entire useful life of the property lost. This
practice is equitable because it reflects expense in the
operating costs of successive accounting periods, only
for such depreciable property as is in use for the benefit
of these periods, and in an amount which is uniform
and fair for each period, taken either separately or in
combination with others.

There is nothing anomalous in the way this item of
expense is treated under such a plan. It is the general
practice to accrue mthin a term any expense incurred
for that term regardless of when the cost is paid,
whether in advance or in arrears. Taxes are accrued
during the period to which the tax relates. Insurance
premimns are apportioned to accounts over the life
term of the policy. The same rule is followed with
bond discounts and many other items. However, we
should not insist that time is the sole unit of measure-
ment applicable to the straight-line method. It has
proven, so far, a quite suitable unit for employment in
the telephone business, where the production and use
of the service are continuous and variation in the extent
of operating use causes as a rule but slight variation in
the rate of wear and tear of the equipment. It is easy
to conceive of cases in which the extent of use of de-
preciable property oscillates, or even fluctuates, widely
in successive periods, and there are many industries
where wear and tear is a major factor in depreciation
closely associated with a varying extent of use.

The straight-line method is sufficiently versatile to

[ 265 ]

Bell Telephone Quarterly

permit the employment of time in active operation,
volume of output and similar units of measurement.

It is, of course, evident from what has just been said
that the Bell System depreciation reserve is a retire-
ment reserve, not a replacement reserve. Under the
theory as stated, the amount of replacements cannot
affect the amount of this depreciation expense. It is
what the company loses in the way of original capital
consumed which determines the amount of the loss,
which would be exactly the same regardless of whether
or not replacements are made. Telephone companies
moreover seldom make replacements in kind, some
other or different equipment or construction being
usually necessary. It would be impossible to estimate
years ahead what replacement costs are going to be, and
in any event, it is fairly certain that investors in tele-
phone securities are not primarily interested in prop-
erty as such but are interested in safeguarding the
money invested in the property which so far as it will
some day be lost in operations, is therefore what should
be covered by the depreciation provision.

Relation of Current Maintenance to Depreciation

We define depreciation for accounting purposes as
the expense occasioned by the using up of physical
property employed as fixed capital. This results in a
complementary definition of current maintenance as
the expense occasioned by keeping such physical prop-
erty in condition necessary for continued use during its
service life. These definitions seem to have the sim-
plicity and clearness characteristic of good definitions.
Of course, in practice some minor concession has to be
made to economy and convenience. It is the aim of the
accoimtants of the Bell System, as it is of accountants
generally, to produce results as correct as possible with
reasonable limitation of expenditure for accoimts and
records.

[266

Straight-Line Depreciation Accounting Practice

Units of Peoperty

On this account it is the practice in specifying the
items of property to be given depreciation treatment to
exclude minor and inconsequential items which can be
safely accounted for as part of or auxiliary to the items
which are specified. For example : In the aerial cable
plant, the main expenditure is for the aerial cable itself,
while a minor part of the total cost is made up of sus-
pension stran'l wire, clamps, rings and other hardware.
The unit of pro]^ erty selected for depreciation purposes
is: ''One span of aerial cable"— one span being the
length of cable suspended between two poles. If one
or more spans of cable are retired, the cost of property
lost is charged to the depreciation reserve and this
charge covers the associated suspension strand, clamps,
rings, etc. But if any amount of strand, clamps or
rings is renewed to keep the composite cable structure
in good working condition during the service life of the
aerial cable which is the principal constituent of the
structure, the charge is to current maintenance. It is
not the custom to allow suspension strand and rings to
remain standing in the plant after the retirement of the
aerial cable which they were erected to support, but in
the unlikely event that such items should so stand for a
considerable time and be eventually retired by them-
selves, no retirement entry would be necessary for them,
because the proper amount of such auxiliary items is
included in the average retirement unit cost for the
aerial cable.

Average Unit Costs

Generally speaking, the retirement imit costs used
in the Bell System are averages of original cost per
unit, so calculated and recalculated currently that if,
for example, all the units in the cable account with their
associated elements were to be instantaneously retired
from service, the accoimting procedure would then and
there empty the asset account for cable, leaving it at
zero. This plan gives assurance, on the basis of aver-

[267]

Bell Telephone Quarterly

ages, that no physical property costs remain in the as-
set accounts after the physical property itself has in
fact gone out of service.

Property Individualized

In the case of buildings, large switchboards and
machines and certain other items which can be conven-
iently individualized for accounting purposes, actual
original cost is maintained and it is not necessary to
resort to the use of average costs.

Ascertainment of Service Lives on the ''Group"

Basis

A very important consideration in modern deprecia-
tion accounting is the problem of group treatment.

Our good accounting books tell us that the factors
which enter into straight-line accounting for deprecia-
tion are, first, the cost of the property ; second, the net
salvage or junk value realizable upon the retirement of
the property and third, the life in service, represented
by the number of accounting periods within which the
service life of the property is comprised. The pro-
portion of expense chargeable to any single period is
the consumable portion of original cost (total cost, less
salvage) divided by the number of periods involved.

The amount of depreciation chargeable annually on
this basis divided by the original cost of the depreciable
property is the annual depreciation rate.

This is fairly simple, but a complex situation arises
in actual practice because in large modern undertakings
the items become so exceedingly numerous. For ex-
ample, one of the large companies of the Bell System
has over 721,020 ]3oles, 12,000,000 conductor miles of
wire and over 2,000,000 sets of subscribers ' instnunents.

It is impossible to deal with the individual service
life of each item, such as a pole or a telephone instru-
ment. It is necessary to study the behavior of large
groups of such items.

[268 1

Strm'f/hf-Lirir B&prceiafion Arrounfincf Practice

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[269]

Bell Telephone Quarterly

The first step obviously is to make such division of
the asset accounts into certain groups as will insure
reasonable homogeneity in the groups. The Uniform
System of Accounts does this. Pole Lines are in one
account, Aerial Cables in another, Open "Wire in an-
other. Subscribers' station apparatus, private branch
exchanges and telephone booths are each in a separate
account.

Let us consider the pole line account. As soon as
we propose an accounting on the basis of groups of
poles, we are faced with the fact that of the poles going
into the plant in any one year, some will have a much
longer life than others. Some poles will be retired be-
cause of storms, others because of public convenience,
others because of the substitution of underground for
overhead distribution. There will be a wide dispersion
of retirements.

We have also to consider that as soon as a pole is
physically retired its cost must be removed from the
fixed capital account and so the depreciation rate must
be applied to a changing quantity of poles. As to the
group of poles installed in any one year, it will be ap-
plied always to the remainder, continually gi'owing less,
of the original number of poles. The whole of the book
account for poles will cover the remainders of many
such groups of poles, one group for each year of original
installation.

Analogy to Life Insurance

The problem of determining average service lives
for telephone plant where there is a substantial varia-
tion in age at retirement is similar to that of the life
insurance actuary in determining the expectation of
human life. The recorded experience upon which the
studies of the life insurance actuary are based, covers
large nmnbers of men. It shows, first, out of the total
number of individuals constituting the group under
observation how many were alive in each year of age

[ 270 ]

Straight-Line Depreciation Accounting Practice

and therefore '* exposed to the risk of dying," to use an
actuarial expression, during that year, and second, how
many actually did die during each year of age. Based
upon this information the life insurance actuary is able
to compute rates of human mortality by age and from

GRADUATED LIFE TABLE
AND RELATED MORTALITY CURVE

AMERICAN EXPERIENCE TABLE FOR HUMAN LIVES
(as craouatco at muntcr)

INDICATED AVERAGE LIFE
I0t48.7- 58.7 YEARS

Fig. 6

these to determine the related expectation of life. This
latter determination is based upon the calculation of a
''Life Table" consisting of a series of figures which
show for an initial group of individuals at a given age
the number who will survive for each successive year of
age thereafter.

[271]

Bell Telephone Quarterly

The ratio between the number dying in any one year
and the number exposed to the risk of dying, constitutes
**the mortality rate" for that year of age. There is a
well developed actuarial procedure by which a series of
such mortality rates by age can be converted into a life
expectancy for the group.

Data as to retirement experience similar to the ex-
perience analyzed by the life insurance actuary are
available for several important classes of telephone
plant, and it has therefore been natural to apply such
actuarial methods of analysis in the determination of
average service lives for those classes of plant. Ex-
tended application of those methods to thousands of
telephone plant life tables has demonstrated conclu-
sively that they are entirely suitable, and it has been
foimd that each life table can be adequately described
by a mathematical formula, whose constants are sepa-
rately determined from each observed life table.

Gompertz-Makeham Formula

The formula involved was first given mathematical
expression by two actuaries, Gompertz and Makeham,
and is widely employed at the present time by life in-
surance actuaries in the graduation of life tables.

One of the interesting points about the use of this
formula is that in spite of its complexity, its applica-
tion has been reduced to a series of routine computa-
tions which can be carried out to completion by ordinary
skilled comptometer operators, working under com-
petent supervision.

As might be anticipated, the mortality rates for any
given age are by no means identical for all classes of
telephone property. Indeed, they are not the same for
a single class of such property for various sections of
the country, and even in a particular part of the coun-
try there may be a change in the rate as the emdron-
ment of the plant undergoes a change. The flexibility
of the Gompertz-Makeham formula is such, however,

[272]

Straight-Line Depreciation Accounting Practice

PRINCIPAL MATHEMATICAL FORMULAS

USED IN GRADUATION OF LIFE TABLES DEVELOPED FROM
"final SUMMARY OF HISTORICAL DATA FOR MORTALITY STUDY"

(0 ^^ - ^ s '' a-*^ (gOMPERTZ- MAKEHAM FORMULa)

^fij^-t

n

n

(3) ^^

C6)

(7)

Z = -iC S" A*^ ^^^ (EXTENDED GOMPERTZ- MAKEHAM formula)

-tc

(a)

(9)

(10)

-«'-/

c - /
s = ^ - C

(lO I^Ay- />[5-Q*

1 v^, ■•

NOTE:

Otheb Capital letters rewesent
.06arithm5 of cohrespwd ing small le tttb?.

Fig. 7

[ 273 ]

Bell Telephone Quarterly

that no difficulty is introduced by these facts. A set of
constants can be determined from the recorded observa-
tions, from which some one curve out of the infinite
number of conceivable Gompertz-Makeham curves can
be derived as representative of the mortality experience

GRADUATED LIFE TABLE
AND RELATED MORTALITY CURVE

EXPERIENCE FOR1923-1924-1925 FOR TELEPHONE
PLANT OF A CERTAIN CLASS

Z
1 60

50

O

K 40

N^

INDICATED
RAGE LIFE 20.0 YEA

^S

\

\

PER CENt\
REMAINING \

k

r

^ h

A

S 1

J \ PER CEN
IT RETIRED PER

YEAR \V^

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•■■fe

itt-i-.

20 2S
AGE

Fig. 8

of property, of the class and in the situation under
examination, and wherever the life history is not yet
complete, this curve will provide a logical and scientific
basis for projection of an observed life table out to its
close.

One of the advantages of the actuarial method of

[274]

Straight-Line Depreciation Accounting Practice

studying plant mortality is ability to bring the depre-
ciation studies closely up-to-date.

"Band" Analysis

Owing to improvements in the telephone art, tele-
phone companies are today obtaining a longer average
life from many plant elements than was formerly the
case. For this reason a study of the retirement expe-
rience in recent years is of especial signijficance and it is
the practice to make concentrated study of portions of
recorded experience, confined to a given strip or band
of the tabular matter. Taking the band of say 1928 as
an illustration: This would disclose the first years' re-
tirements on plant installed one year ago, the second
year's retirements on plant installed two years ago, the
third year's retirements on plant installed three years
ago, and so on backward, say to the thirtieth and final
years' retirements on plant installed thirty years ago
and now completely retired.

The band study substitutes for the complete analysis
of say, 30 years ' experience of one group, an analysis of
one year's experience with say 30 groups, each group
successively one year later in time of installation than
its next predecessor group. One study scans, as it
were, the warp while the other scans the woof, of the
statistical fabric.

The advantages gained are first, the greater reliabil-
ity of the most recent records, and second, the reflection
in the results of the most recent company policy and
plant administrative technique.

The two sorts of studies mentioned may be made
in conjimction, the results compared and their mutual
consistency derived. In practice, studies are not ordi-
narily made of bands for a period so short as one year.
Three years is generally as narrow a band as the quan-
tity of data will justify as adequate. The bands may be
selected so as to overlap ; for example having analyzed
the 1915-17 band, the next band taken may be 1916-
18, then 1917-19 and so on.

[ 275 ]

Bell Telephone Quarter] if

100
90
80
70
60
£0
40
30
20
10
0

CHECK OF GRADUATION PROCESS

APPLIED TO 1924-1925-1926 DATA

-^ — DOTTEU CINE REPRESENTS ACTUAL RETIREMENT DATA
SOLID LINE REPRESENTS GRADUATION or RETIREMENT DATA

100

-^

k

1 -A- 1

, AOE 0 TO 2I'/.L

\

\

V

\

\

V

(

—

INDICATED
WERAGE LIFE
17 9 YEARS

\

\

V

90
80
70
60
50
40
30
20
10
O

"^

N

^ -B- 1

jIaOF- 0 TO ISVil,

\

\

V

\

1

\

\i INDICATED
— AVERAGE LIFE
|'l6 3 YEARS

\

>

V

N

15 20 25 30 35 40
A 0 E

IS 20 25 30 35 40
A 6 E.

100

90
80
70
60
50
40
30
20
10

"^

\

1 -c- 1

„ AGE 0 TO t7'/t J

V

N

\i

\

\

\

V

-.

INDICATED

AVERAGE LIFE

18,1 YEARS

\

A

V

\

^

loor-

90

o

Z 80

I -

B 60

"^ 50

H

z 40

UJ

^ 30

ui 20

10

■^

\

!| " -D- 1

) AOE 0 TO IS'/. .

V

\

V

\

V

\

-

INDICATED
iVERACE LIFE
19 3 YEARS

\

\,

V

5 to 15 20 25 30 35 40

5 10 15

20 25 30 35 40
AGE -£- AOE

COMPARISON OF RESULTS OBTAINED BY SERIES OF

GRADUATIONS (A,B,C AND D) AFTER SUCCESSIVELY

DISCARDING LAST TWO POINTS OF OBSERVED LIFE TABLE

tXPEBItNCt
FOR AOE3 .
0 TO: <

21'/,

19/e

17/,
15'/,

IN

) 2

Die

2 ^

ATE

ID

Y

5 £

WE

E A
i 1

RA(

R S
D 1

3E

2 W

UFE
i 1

3 18 2<

D

^

h=-

Fig. 9

i276]

StrnicjJit-Line Depreciation Account i in/ Practice

Turn-over Method

For certain classes of telephone property, the
actuarial method just described cannot be employed in
practice on account of technical difficulties and expense
in the collection of data.

For these classes, an alternative method of pro-
cedure is employed, which has been denominated the
' 'turn-over method." Those familiar with life insur-
ance will understand at once the fundamental principle
of the turn-over plan when we say that it is the same as
that which is involved in the relation of total deaths of
human beings of all ages to exposed population of all
ages in a non-growing community.

The accounts of the telephone companies are kept to
show separately the amount of plant of each class going
new into the plant in any year and the amount of old
plant of each class retired from service in any year.

If the class of plant were to remain stationary in
amount and stable in its life characteristics and age dis-
tribution, the average time that plant remained in serv-
ice could be readily ascertained from a relation of either
the retirements or the replacements to the total plant.
Either the length of the period of time required for the
most recent replacements to accumulate to the amount
of the plant at the end of that period or the length of
the period of time required for the retirements to ac-
cumulate backwards in time to the amount of the plant
at the beginning of that period— the two periods being
the same— would be the length of the life of plant of the
given class, on the average.

Determination of the average life of telephone prop-
erty on this basis is made difficult by several conditions ;
viz.:

a Changes in the life characteristics of plant which occur
during the period studied.

T) Changes in the purchasing power of the dollars, in which
the books are kept, whereby a given number of dollars
may represent more or less plant than formerly,

[277]

EXAMPLE TO ILLUSTRATE PRINCIPLE OF TURNOVER METHOD

PLANT GROWING AT THE RATE OF 10% ANNUALLY
DATA IN TERMS OF PLANT COSTS- AVERAGE LIFE OF UNITS lO YEARS

TABLE OF PLANT UNITS AND COSTS

PLANT PLACED

PLANT RETIRED

1 PLANT IN SERVICE

NUMBER
OF UNITS
1

1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927

50.54 5

55.599

61,159

67.275

74,0 0 3

61,403

89.543

96,497

108.347

1 1 9,1 82

131,100

144.21 0

158,631

174,494

UNIT
COSTS

2

$1.00
.90
1.10
1.60
1.80
1.65
1.40
1.60
1.30
1.25
1.35
1.40
1.55
1.50

TOTAL

COST

3

NUMBER
lOF UNITS

$50,545
50,039
67,275
107,640
133,205
134.31 5
12 5.360
157.595
140.651
148,978
176,985
201,894
245,878
261.741

20.826
23.1 1 0
25,539
28,163
31.010
34.11 2

3 7,523

4 1.273
45.404
49,942
54,935
60,429
6 6,475
73,120

UNIT

COSTS

5

$1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.33
1.37
1.36
1.34
1.35
1.35
1.38

TOTAL
COST

$20,826
23,110
25,539
28.163
3 1,010
34.112
3 7,523
54,893
62,203
67,921
73,613
81.579
89,741
100,906

TOTAL COST

ACCUMULATED

FROM 1926

NUMBER
OF UNITS

$ 602,491
568,379
530.856
475,963
413.760
345.839
272,226
190,647
100,906

292,982
322,701
35S.I 90
3 9 0,810
429,922
472,91 5
520,206
572,226
629,450
692,393
761.633
837,798
921,579
1j013,735
1,1 1 5.1 09

TOTAL

COST

9

$292,982

322.701

349,630

391,366

470,843

573,038

673,241

761.078

863,780

942,428

1,023,485

1,126.857

1,247,172

1/403,309

1.564,144

APPUCATION OF TURNOVER METHOD

1000 °

IGROWTH
-0.9-«(0.2|

-SAME ADJUSTED FOR CHANGES IN COST LEVEL 9.1 YR5.
SAME FURTHER ADJUSTED FOR GROWTH 10 YRS.

Fig. 10
[278]

Straight-Line Depreciation Accounting Practice

c Growth, positive or inverse, in the total plant of the given
class during and preceding the period studied, which
disturbs the mortality ratio. When retirements are
studied, for example, positive growth introduces the
condition that some of low age mortalities of the
added plant which produces the growth enter the
results as a disturbing element.

d Purchases and sales of telephone plant from one company
to another. These transactions operate like sudden
growth.

None of these difficulties is insuperable. The
changes in the characteristics of plant may be fairly
well recognized. The changes in the value of money
can be compensated by placing the study upon an "in-
dex number" basis. Suitable methods have been de-
veloped to make allowance for the effect upon the turn-
over period of such growth as may have taken place.

The turn-over method while theoretically inferior
to the actuarial method has been found practically very
useful and dependable.

Special Cases— Buildings and Central Office
Equipment

For two classes of telephone property, buildings and
central office telephone equipment, we fiiid that the best
way to estimate the depreciation rates is to forecast
how long, in view of population growth and the prog-
ress of the service, existing buildings and equipment
mil individually serve to meet the needs of the com-
munity.

The long-term basis upon which plant of these
classes is engineered is such that forecasts of this sort
can be made with a reasonable approach to accuracy
and in the case of central office telephone equipment,
the existence of a condition peculiar to such equipment
should be mentioned.

Central Office telephone equipment is usually not
installed to the full capacity of the Central Office at the
time of initial provision of such equipment. A certain

[279]

Bell Telephone Quarterly

quantity of equipment is installed sufficient to provide
service for a given number of years and is added to
from time to time as demand increases, the later equip-
ment being commingled with the earlier.

We thus have a problem of growing property struc-
tures, wherein the weighted average age of the com-

AVERAGE REALIZED LIFE OF NO. I CENTRAL OFFICE EQUIPMENT

AT VARIOUS A6ES OF INITIAL INSTALLATION

BASED ON EXPERIENCE OF 644 OmCES IN THE BELL SYSTEM

u 12

Ul
N

UJ

O

$ 2

[—

12 UJ
u.

J

10 Q

' UJ
N

3 ""li

5<

<u
6 ^^

UJ

' I

u
2 ^

*^

>

^

o*

^

-J

^

— •

o^

*<i

^

^

''

y

y

y'

/

y

y

H

/

/

°0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32
AGE OF INITIAL INSTALLATION-YEARS

Fia. 11

ponent units of the structures is much less than the
overall age of the structures as operative entities.

Some interesting investigations have demonstrated
the relation of average realized life of Central Office
equipment to age of initial installation for various ages
of the latter, and it has been found that the engineering
economics in the advance provision of this class of
property set rather definite Imiitations to the average
life of the composite structures, even though the age of
the first and oldest portions of the structures may be
very lengthy.

In the ordinary classes of telephone property we
have groups of homogeneous units, the components of

[280]

Straight-Lme Depreciation Accounting Practice

wliicli arrive together in a given year but gradually
and variously waste away.

In the case of Central Office telephone equipment,
we have the rather unusual phenomenon of groups of

SOME CAUSES OF ORDINARY DEPRECIATION OF TELEPHONE PLANT
AND ILLUSTRATIONS OF THEIR EFFECTS

r

KIND OF

DEPRECIATION

PLANT

CAUSES Of

(PREDICTABLE

CHARACTERISTICS

DCPReCIATION

EFFECT)

AFFECTED

ILLUSTRATIVE CASES

ACTION OF tieUENTS

ROT. RUST AND
DECAY

PHYSICAL CONDITION

DETERIORATION OF WIRE^

ORSANIC AGENCIES

ROT, RUST AND
DECAY

PHYSICAL CONDITION

ROTTING OF POLES

use IN OPERATION

*«EAR AND TEAR

PHYSICAL CONDITION

DETERIORATION OF AUTO-
MOBILES IN USE

INJURY

WEAR AND TEAR

PHYSICAL CONDITION

UNDERGROUND CABLE INJURED
BY WOR^MAN■S PICK

STORKS AND CASUALTIES

WEAR AND TEAR

PHYSICAL CONDITION

POLES DESTROYED BY SLEET
STORM

IMPROVEMENTS IN THE

OBSOLESCENCE

FUNCTION

SUBSTITUTION OF CALL IN-

ART

DICATOR POSITIONS FOR
MANUAL"B" POSITIONS IN
CENTRAL OFFICES

GROWTH OF COMMUNITIES

INADEOUACY

CAPACITY

SUBSTITUTION OF A LARGER

SERVED

UNIT, SUCH AS A SKVITCH-
-BOARD OR CABLE

MORE INTENSIVE SERVICE

INADEQUACY

CAPACITY

SUBSTITUTION OF A LARGER
UNIT. SUCH AS A SWITCH-
BOARD OR CABLE

HRES

DAMAGE

PHYSICAL CONDITION

BURNING OF STATION

APPARATUS IN A BUILDING
FIRE

ADVANCING SOCIAL

PUBLIC

CHARACTER AND

LINES RETIRED BECAUSE OF

STANDARDS

REQUIREMENTS

LOCATION

PUTTING WIRES UNDER-
GROUND ON THOROUGHFARES

PUBLIC CONVENIENCE

PUBLIC

CHARACTER AND

POLES RETIRED BECAUSE OF

REQUIREMENTS

LOCATION

HIGHWAY CHANGES

,,

Fig. 12

units which arrive from time to time and are com-
pleted in a single structure, no part of which is separ-
able for depreciation purposes because of the mutuality
of relation of all of the parts, regardless of age, the en-
tire structure being eventually retired en bloc.

[281]

Bell Telephone Quarterly

"Oedinary Depeeciation " vs. ''Extraordinary
Depreciation ' '

In the studies and projections previously referred
to, we have been concerned with losses caused by what
is generally termed "Ordinary Depreciation." How-
ever, there may be certain other operating losses, to
which we have not heretofore referred, that might well
be classed as ' ' Extraordinary Depreciation. ' '

Fundamental accounting considerations lead us to
distinguish f oirr kinds of losses :

First : Losses such as customarily result from the devotion of
perishable plant to service through wear and tear, storms
and other casualties, inadequacy, obsolescence, etc. ; that
is, "ordinary depreciation." Reasonable prudence de-
mands proper and adequate provision for the full
amount of such losses.

Second : Losses, not the ordinary outcome of use in operations
but which are known from the nature of the property,
to be at times the outcome of a definite hazard of em-
ployment, for example, destruction by fire. Prudence
makes such provision proper as is dictated by the nature
and extent of the hazard and the contingency of de-
preciation loss. (In the case of the Bell System, because
of the nature of the property and the extraordinary
precautions taken to protect the service against inter-
ruption, fire losses not covered by underwritten insur-
ance have been of such extremely minor consequence
that we prefer to consider them as covered in our pro-
vision for ordinary depreciation.)

Third: Extraordinary losses which are not common to the
particular property and do not flow from the ordinary
hazards of employment, which prudence does not require
us to anticipate but which are nevertheless conceivable
and for which the accounting system must afford the
means of possible depreciation treatment. Losses due
to earthquake or war or to some unforeseen revolution-
ary invention would come under this class. Such losses
are too uncertain and remote to admit of advance pro-
vision being made by any method sufficiently definite to
warrant inclusion of charges as operating expenses and,
under these conditions, the blow to the assets, should it
occur, must be met temporarily by the company's exist-

[282]

Sfraipht-Line Depreciation Accounting Practice

ing surplus, which ought to be maintained, among other
things, to enable the company to outride the financial
troubles induced by such unforeseen events. Their
amortization must be accomplished after the event and
in the telephone business we consider that it would be
good accounting in order not to distort the current ac-
counting of the time when the blow fell, to charge such
losses initially to suspense and to amortize the amount
involved, by installment charges, over a reasonable
period of time, in a separate account under Operating
Expenses to be entitled "Extraordinary Depreciation."
If revenues during this process are sufficient for the
purpose, the gradual accumulation in the undertaking
of additional assets equivalent to the amortization in-
stallments will eventually effect a restoration of the
surplus.
The fourth species of loss is that which does not affect
merely individual items of plant or equivalent in a con-
tinuing industry so much as it attacks the industry as
a whole. For example, there was the supersession of the
wooden ship building industry when iron ships made
their appearance. There was the destruction of many
bicycle businesses when the automobile arrived. The
risk of losses of this sort, which cripple or destroy an
industry, not merely items of its equipment, must be
covered, if at all, out of current profits. Such risk is
one of the general hazards of business to be considered
in determining what is an acceptable return from the
enterprise.

With this understanding of the limitations of ordi-
nary depreciation accounting, we may say that it covers
the losses that culminate upon the retirement of prop-
erty from service which are occasioned by causes known
to become operative in the ordinary conduct of the
undertaking and the effects of which can be forecast.

The fact that no account is taken by telephone com-
panies of the possibility of something extraordinary
happening does not mean that the eyes of telephone ac-
countants are shut to that possibility. We simply re-
solve our doubts in favor of a longer rather than a
shorter life, until the unf orseen shall occur.

[283]

Straight-Line Depreciation Aeronntinr/ Practice

Forecasting Service Life and Salvage of Existing

Property

The problem of forecasting ordinary life and sal-
vage of telephone plant is not a difficult problem, as
business and accounting problems go nowadays. It re-
quires sufficient data, drawn largely from past experi-
ence, and the consideration and judgment of competent
experts.

The telephone business has certain peculiarities
which favor the correct determination of the deprecia-
tion factors of service life and salvage.

A telephone company undertakes the provision of
the entire service within an area. It operates without
competition of similar companies. There is a direct
relation between the spread of its service and the
growth of population. Telephone plant is so costly
and the importance of locating central offices and dis-
tributing systems economically with reference to the
spread of communities is so immense, that it is the cus-
tom of telephone engineers to prepare and continuously
maintain for the exchange plants of urban centers and
for toll systems, "Fundamental Plans" which look
ahead for a certain number of years and furnish a de-
pendable conspectus of the telephone situation, present
and prospective, in the area.

Long-lived Property

Certain long-lived properties, such as main conduit
runs and buildings of the typical American monu-
mental type offer points of difficulty as to probable
service life. The judgment of experts is of special
value here and there is always opportunity to restudy
the matter as the age of the units increases and the
engineers obtain a farther view into the future through
the Fundamental Plans. The eventual retirement of
such property can be forecast as most probable, there-
fore a reasonable estimate— even though containing a
margin of error— keeps the accounts more nearly cor-

[284]

Bell Telephone Quarterly

CO

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[285]

Bell Telcplione Qnarferhf

rect from year to year than if a heavy retirement
liability be conveyed to the future without any pro-
vision to meet it.

Salvage

The factor of salvage in telephone depreciation has
been successfully dealt with in practice. A study re-
cently made of plant retired, salvage on which was
allowed for in the computation of depreciation rates to
the amount of $122,594,000, revealed that the net salvage
actually realized was $122,499,000. The chief problem
in the treatment of salvage, especially for the longer-
lived property, is one of secular variation in cost levels.
Index number studies are very helpful in interpreting
the records of the past as shown in the accounts.
Existing market prices of junk material are helpful.
Price changes in the future may properly be considered,
if a fairly definite forecast can be made, but resort to
speculation is not advisable.

The Eole of Judgment

The proper interpretation of the data regarding
plant life and salvage obtainable from accounts, records
and statistics is of equal importance with the integrity
of the data themselves. It would seem that we should
have first: investigations of past service life and sal-
vage through sound accounting and statistical methods ;
second: investigations of the conditions surrounding
the emplo^anent of such plant in the past and of the ex-
tent to which such conditions still prevail; third: the
best possible forecast of conditions looming in the fu-
ture which should exert a modifying influence upon
either life or salvage. And then, the active judgment
which fuses the experience of the past, so far as it is
still pertinent, and the expectation for the future, so far
as it is presently pertinent, into a just and reasonable
determination of the current rate of depreciation for
the time being.

The ascertainment and interpretations of the facts

[286 1

Straight-Line Depreciation Accounting Practice

and the making of the expert opinions and estimates
must be undertaken by persons thoroughly familiar
with the property and conversant with the future plans
of the management. The company's future policy and
program are intimately bound up with this undertak-

DEPRECIATION RATES FOR A LARGE TELEPHONE
COMPANY IN THE UNITED STATES

DEPRECIATION
PORTION OF PROPERTY RATES %

EXCHANGE RIGHT-OF-WAY 5.0

TOLL RIGHT-OF-WAY 2.5

BUILDINGS 2.1

C.O.EQUIPMENT-MANUAL 8.5

-PANEL 6.0

-STEP -BY-STEP 6.0

OTHER EQUIPMENT OF CO 8.0

STATION APPARATUS 4.5

STATION INSTALLATIONS 1.0

INTERIOR BLOCK WIRES 4.0

PRIVATE BRANCH EXCHANGES 5.0

BOOTHS AND SPECIAL FITTINGS 3.6

EXGHANGE POLE LINES 7.5

EXCHANGE AERIAL CABLE 6.2

EXCHANGE AERIAL WIRE 7.6

EXCHANGE UNDERGROUND CONDUIT -MAIN 2.0

-SUBSIDIARY .... 4.0

EXCHANGE UNDERGROUND CABLt -MAIN 2.5

-SUBSIDIARY 6.0

EXCHANGE SUBMARINE CABLE 7.0

TOLL POLE LINES 6.0

TOLL AERIAL CABLE 4.0

TOLL AERIAL WIRE 4.8

TOLL UNDERGROUND CONDUIT 2.0

TOLL UNDERGROUND CABLE 2.5

TOLL SUBMARINE CABLE 7.0

OFFICE FURNITURE AND FIXTURES 7.0

COMPOSITE RATE FOR COMPANY 5.05

Fig. 14

ing. Fundamentally, the determination of the proper
rate is a problem of management ; there can be no ma-
chine solution of it.

The Depeeciation Keserve Account

Passing now to another phase of the subject; i.e.,
the depreciation reserve account in the balance sheet,

[287]

Bell Telephone Quarterly

which arises as a result of the accrued depreciation
charges in the Income Statement.

In its origin, the "Reserve for Depreciation" ac-
count is merely the reflection under a system of double
entry bookkeeping of what remains in the liabilities
from the past charges for depreciation expense. The
entry of prime importance is the charge to expense,
which could be made equally as well under single entry
bookkeeping ; such a charge would be sufficient in itself
to insure correct accounting. The expense charge
serves the fundamentally important and useful purpose
of debiting to any year or other accounting period
recognized by the accounting, one of the costs of render-
ing telephone service during that period, namely the ex-
pense of depreciation. The total cost of that service
cannot be inclusive without the item of depreciation.
Along with this fundamental proposition of stating de-
preciation costs in periods in w^hich they should be
stated in order that the expense accounts may reflect
true costs, goes the point that this procedure has the
advantage of substantially equalizing the effect of
property retirements. It is, of course, desirable that
there be reasonable equalization, but this effect of de-
preciation accounting is merely a collateral effect of
steps taken primarily to accomplish the purpose of
spreading the retirement costs equitably over the serv-
ice life to the depreciating property.

However, because double entry bookkeeping is em-
ployed and because the balance sheets of corporations
which have become so important in modern times are a
product of the double entry system, the reserve for de-
preciation, as a liability account, of itself comes to serve
some unportant and useful purposes.

Advantages of Reserve Accounting

As an accounting consideration, the reserve account
exhibits the accumulating provision for retirement of
existing plant, which remains after charging off the loss

[288]

Straight-Line Depreciation Accounting Practice

on items that have already been retired from service.
In the same way, the reserve of a life insnrance com-
pany represents the provision for meeting the acciunu-
lating liability which will mature upon the death of its
policyholders.

RESERVE RATIO FOR VARIOUS RATES OF PLANT GROWTH

(AfTER ATTAINMENT Of 5TABLX ACE DISTRIBUTION CORRESPONDING TO EACH RATE OF GROWTH}

uw>/>'r..r.r.. 15 Yeak Avciasc Lift', 25% Nct Salvasc;

nvPOTHtSCt. UcTAtlTV CUHVI RlTI«CHCNT.

40X

35%

25 J

35S

305(
25X

20$

^^^^""•^^

■ ^.....,^

2C%
15%

lOS

SX

15%

10%

SX

0

0

0 5% lOS 15% 20%

Annual Ratc or Plakt GnowrM

Fig. 15

As business considerations, several advantages of
the reserve account appear. An adequate reserve ac-
comit appearing in the balance sheet is a sign that the
integrity of the company's assets is being maintained.
The appearance of the accoimt in this way before in-
vestors assists the companies to attract capital for ex-
tensions and betterments on favorable terms and as a
result of these features, the depreciation reserve ac-
count assists a company to maintain service to its users
with economy and in a high-grade manner.

Accuracy of the Reserve Account

In the course of years the reserve account assiunes a
prominent j)lace in the balance sheet, and sooner or

[289]

Bell Telephone Quarterly

later it may becoiue a matter of concern to know that it
is reasonably correct. For this reason a knowledge of
the characteristics of reserve growth is important. For
any particular group of property installed at a given
time the reserve account must, of course, increase
steadily at first, reaching its maximum in dollars about
the time of the average life and its maximum as a per
cent, of the property to which it relates immediately
before retii^ement of those components of the group
which achieve the longest individual lives.

For all groups of a homogeneous class taken to-
gether, the reserve account will exhibit a condition
which is dependent upon the complex of the successive
groups, upon their relative volume and upon their ap-
pearance and disappearance in time with respect to
each other.

Theory of the Reserve Account in Growing
Properties

The introduction of new groups into the class will
decrease the reserve ratio: the ratio of the amount of
the reserve account to the amount of the property class.
Reserve ratios are lower in growing than in non-grow-
ing properties, other conditions being the same. Dis-
regarding oscillations, a long continued uniform rate of
growth tends to produce a stabilization of the reserve
ratio, at a point dependent upon the particular rate of
growth. If the rate of growth later increases, the re-
serve ratio becomes lower and will tend to stabilize at
the lower figure as long as the higher rate of growth
continues.

Theory of Reserve Account in Non-growing
Properties

A condition of non-growth in a continuing property
eventually brings about, after a stable age distribution
is achieved, a reserve ratio at the highest point obtain-
able in a non-disappearing plant with stable age distri-

[290]

Straight-Line Depreciation Accomitinf/ Practice

bution. If units were always retired at the point of the
average life (i.e. if they all had the same age at time of
retirement) , this highest ratio would be, mth no salvage
.50, or, with salvage, one-half of the sum derived by
subtracting the ratio of salvage from 1.00, but with dis-
tributed retirements, the highest ratio must always be
less than .50, for the loss of those members of the group
which perish before the term of the average life occa-
sions a greater reduction, percentagewise, in the reserve
account to which their loss is charged than in the prop-
erty from which their original cost is subtracted.

Effects of Group Basis of Accrual

Group accrual does not provide for the entire loss of
short-lived components during their individual lives;
the accrual must be carried out on the longer-lived com-
ponents to the end of their lives and beyond the mid-
point representing the average life of all components,
in order to provide for the entire loss of the group as
such. For this reason, it is not possible to reckon up
from an examination of the ages of items presently in
service how much should stand in the reserve account
in respect of such items.

Retirement Expense Less Than Depreciation in
Growing Properties

A knowledge of the characteristics of the mtios of
current annual retirements (which are the annual gross
debits to the reserve account), to the straight-line ac-
cruals for depreciation in the same year is also desir-
able.

In a growing plant, the annual retirement losses will
be less than the current true annual expense of depre-
ciation and the greater the rate of growth, the smaller
the retirement losses will appear in comparison with
the current depreciation rate, the reason being, of
course, that in a growing plant there are new plant
groups in operation on which depreciation is accniing

[ 291 ]

Bell Teleplione Quarterly

but which are not yet represented, or are but slightly
represented, in the retirement losses. If we conceive
of a rapidly growing plant in three successive stages of
its existence, such stages being representative of a pe-
riod of turnover of the plant, designated A, B and C,
then, speaking in averages, the retirements during B
will relate for the most part to the smaller plant A,

EFFECT OF PLANT GROWTH ON ANNUAL REALIZED DEPRECIATION

Nea rLANT installed in riRST ycar with uniforu

HyPOTHtSES: NET 600WTH TKtREArTtll ; 15 YEAR AvCRAGC LITE;

25% Net Salvage; Mortality Curve Retirement.

6%

>
CL

IS
0

ANNUAL l^.

>ENSE Of C

;PRECIATIO

'--X

>

A

ANNUAL REA

.IZED DERR

2

a.
o ■

te

hi

0.

IS

0

:CIATION -

5% GROWTH

I

U:

^.^^■^^^^

^

ANNUAL REA

LlZES tCPR

:CIATION -

lOX GROWT

1

J

r

y

0 5 10 15 20 25 30 35 40
El«?sed Tiue im Years

Fig. 16

while the depreciation reserve account is current!}^
building up to meet the greatly increased eventual re-
tirement liability of B. Similarly in period C retire-
ments will relate to the smaller plant B, while the ac-
cruals now relate to the greater plant C. For this
reason any attempt to ascertain percentages of current
depreciation expense to investment in a growing prop-
erty by dividing the average retirement losses by the
average plant in service during the period within which
such losses cuhninate, involves a mathematical fallacy.

[292]

Straight-Line Depreciation Accounting Practice

Obstacles to Employment of Straight-Line Method

In all that has been said so far, the practicability
and indeed the desirability of the straight-line method
for depreciation expense accounting has been taken for
granted, but obstacles to the use of this method un-
doubtedly exist in some cases. The obstacles usually
appearing are :

Inability to set up a line of demarcation hetween current main-
tenance and depreciation. It would seem possible generally, though
perhaps not universally, to overcome this difficulty by the adoption
of a system of units of property, the retirement of which would be
depreciation, work on which while in service, including replace-
ments of parts, would be current maintenance. Under this plan,
minor parts would be charged as depreciation only as originally
embodied in the unit of which they were a part at the time of its
installation and would be written off to reserve as an undivided
part of the retirement loss of the unit, when the unit is removed
or abandoned.

Difficulties in forecasting service life. This obstacle may in some
cases appear serious, but in most instances it is unduly magnified.
Most accountants probably would agree that the difficulty of ac-
counting does not warrant entire neglect of accruing depreciation.
It is the duty of a company to manage its business well and sound
management may require, in many cases, ample provision for an
inevitable loss, uncertain merely as to the time of its incidence. If
provision should be made on some basis, probably a straight-line
treatment, even with a considerable margin of error in the initial
assumptions, would be reasonable, the matter to be periodically re-
examined. Is it not a good rule that where difficulties in ascertain-
ing accounting values are largely inherent in the nature of the
subject-matter, the accounting should nevertheless go forward, the
factors involved to be determined arbitrarily by the use of judg-
ment, as nearly as may be ?

In a number of industries, it has been considered that the
straight-line method does not afford sufficient protection against
unanticipated depreciation, due to unforseen progress in the art,
exigencies of competition, etc., and the reducing balance method has
been adopted. One factor here is whether the nature of the enter-
prise is such that amortization in arrears of extraordinary casualty
damage, sudden major obsolescence or losses on unanticipated re-
construction, is possible without too great risk or detriment. Cer-
tainly, risky and uncertain enterprises and those in a rapidly
evolving state due to revolutionary inventions or discoveries, if

[293]

Bell Telephone Qnarterh/

they apply the straight-line method, may very well reverse the
ordinary course, and resolve their doubts, in the early years of use
of plant units, in favor of a shorter rather than a longer life.

In Conclusion

Within the lifetime of our older accountants; the
depreciation charge has been successively characterized
as improper, then legitimate, and lastly as necessary.
There are but few now who contend that the deprecia-

900

DEPRECIATION RESERVE A5 RELATED TO
TOTAL DEPRECIABLE PROPERTY

BELL SYSTEM

800

400

30% or TOTAL DtPRECIABLC PROPERTY

7^-

800

Fig. 17

tion charge is improper; its legitimacy is generally
recognized. Not all agree that it should be compulsory.
As regards telephone companies, the straight-line basis
is generally believed to be in the best interest of the
companies as regulated undertakings, and of the public
which they serve, and it is compulsory by law.

It is unwise to become dogmatic regarding the treat-
ment of depreciation because the question presents so
many different aspects as viewed from different indus-
tries, with their varied histories and traditions, prac-

[294]

Siraight-Line Depreciation Accounting Practice

tiees, and prospects. Any accounting method which
generally commends itself as a fair method to those
interested in an industry of a particular type is worthy
of a fair hearing and if it has worked well, it should not
be lightly overturned. Nevertheless, there cannot be
more than one set of sound accomiting principles.
This makes necessary mutual agreement upon the
fimdamentals, upon definitions and the use of terms,
without which arguments become confused and the
meeting of minds impossible. When the terms em-
ployed are made susceptible of but one meaning, it may
be possible to secure general agreement as to principles,
and the application of sound principles to highly va-
rious industrial fields of operations may well result in a
variety of treatments which are salutary and practi-
cable in certain fields to which suited, but impracticable
or inadvisable elsewhere.

In the telephone business in the United States, the
suitability of the straight-line depreciation accoimting
practice has been tested and demonstrated by long
experience.

Allan B. Crunden,
Donald E. Belcher.

Editor's Note: Mr. Crunden is Assistant Comptroller and Mr. Beleher
is Assistant Chief Statistician of the American Telephone and Telegraph
Company.

[295]

Installation of New Types of Buried
Toll Cable

Abstracted in part from a paper presented at the Bell

System Engineering Conference, June, 1929, hy

C. W. Mier and B. D. Hull of the Southwestern

Bell Telephone Company

THE toll lines of the Bell System consist of two
general types, open wire and cable, depending
largely upon the number of circuits required
along a given route and the rate of growth. When
cable has been employed it has been installed either on a
pole line or in conduit, the conduit usually being placed
under or closely parallel to highways, inasmuch as ac-
cessibility to such large units of plant is important
from the standpoints of construction and maintenance.
Aerial cables are, however, frequently installed along
private rights-of-waj^ and this, of course, results in
shortening the route.

The recent rapid growth in toll traffic has required
the installation of cables throughout constantly widen-
ing areas, where a few years ago the traffic was ade-
quately handled over open wire lines. On many of the
routes in these areas, conduit could not be justified so
that cable on pole lines would normally have been
employed. Realizing, however, that there would be
advantages in underground installations, considerable
study was devoted to the problem of finding a cheaper
method of placing cables underground, that w^ould be
applicable to these routes. This problem has been
solved by the introduction of two methods of installa-
tion that are new to the Bell System.

One of these methods employs a cable buried in the
groimd, without conduit. The lead covered cable used
for such installations is manufactured with protective
coverings of impregnated paper, jute and steel tape,

[296]

Installation of New Types of Buried Toll Cable

which safeguard the sheath of the cable from subse-
quent soil corrosion and from mechanical damage. The
other method, which conforms more nearly to estab-
lished practices, consists in laying a single fiber conduit
and pulling the usual type of lead-covered cable into it
by means of the powder winch line. In both cases, man-
holes are constructed at loading points only, and thus
about 90 per cent of the manholes employed in the more
usual conduit structure are omitted.

Inasmuch as these types of installation are new, it
was necessary to develop entirely new procedures for
the construction work and in this connection a very im-
portant element has been the extensive use of labor-
saving machinery, making it possible to carry out the
work expeditiously and at relatively low costs. Much
of this machinery has been developed for this specific
purpose by Bell System engineers and in other cases it
was necessary to adapt commercial machinery to meet
the requirements of this work.

Survey and Clearing Right-of-Way

In general, buried toll cable is located on private
property which usually permits the selection of the
shortest possible route.

In some cases it has been found desirable to make
aeroplane photographs to assist in selecting the route
along which the preliminary survey will be made.
Such pictures assist materially, particularly through
areas where the terrain is broken and wooded, inasmuch
as in such locations the selection of a satisfactory route
would otherwise be extremely difficult.

After the route has been selected and surveyed, it is
necessary to clear it of trees and other obstructions suf-
ficiently to permit the movement of construction ma-
chinery incident to digging the trench, delivering and
placing the cable and loading coil cases, and backfilling.
Clearing the right-of-way is done by means of cater-
pillar tractors, scrapers, power graders, and in some

[297]

Bell Telephone Quat^terU/

cases it is necessaiy to also employ compressed air
equipment.

Shipping the Cable

Both the tape armored cable and the cable to be in-
stalled in fiber conduit are shipped in lengths of about
755 feet. For the tape armored cable which in the size
now being installed is about 60 per cent heavier than
the ordinary lead-covered cable, a steel reel is used.
This reel, with its load of cable, weighs about 5 tons.
Shipments from the factory are made by either boat or
rail or a combination of both, depending upon the point
of destination.

It will be noted that sufficient room is left at the end
of the loaded car to permit turning the reels in case it
is necessary to unload them from the side of the car.

Delivering Cable from Railroad Cars

Wherever practicable the reels of cable are un-
loaded by rolling them out over the end of the car to
the platform of a truck.

However, conditions are met where it is necessary to
unload the cable from the car to the ground, in order to
store it until the truck deliveries can be made.

For this condition it is usually necessary to locate
the power winch equipped truck on the same side of the
track as that upon which the reels are to be lowered.
The power winch line is threaded under the car, through
a special tackle and over the platform of the car to a
yoke which lowers the reel over heavy skids to the
ground.

Delivering Reels of Cable to the Job

Two methods are in use for delivering cable to loca-
tions on private property. The more recent and faster
method is to employ a heavy-duty four-wheel-drive
truck equipped with a 100 horse-power engine.

[298]

Installation of New Types of Buried Toll CaUr

Dual pueuniatic tires of the largest size now com-
mercially available are used on the rear wheels of this
truck. On the front wheels dual tires are also used, the
inside tires being of the same size as those on the rear
wheels and the outside tires of somewhat smaller
diameter and width. This arrangement of tires on the
front wheels permits of easy steering on hard surfaced
roads and the smaller outside tires come into action im-
mediately when soft ground is encountered. Trucks
of this kind have performed satisfactorily both in
mountainous territory and where very muddy or sandy
conditions had to be negotiated.

The other method of delivering cable to private
property consists in moving it as far as practicable with
rear wheel drive truck equipment, and then taking it
across the private property on trailers equipped with
caterpillar tracks and drawn by caterpillar tractors.

Both the four-wheel-drive truck and caterpillar
tractor-trailer methods of cable delivery are satisfac-
tory. However, the truck has the advantage of being
able to travel at a speed of about 20 miles per hour
whereas the tractors make a speed of only four miles
per hour.

Digging the Trench

In ordinary soil a trenching machine of the type il-
lustrated can be operated satisfactorily.

A machine of this type wdll dig a trench about 15
inches wide and 30 inches deep, such as is required, at
the rate of from one-half to one mile per day, depending
upon the conditions encountered. It will not, of
course, dig through solid rock. However, some soil
formations have been excavated, which contained a
great deal of rock.

"V^^iere much rock is encountered a very ragged
trench results. However, the saving due to the use of
machinery as compared with hand labor, under such
conditions, is very great.

AYliere the rock contains numerous seams and

[209 1

Bell Telephone Quarterly

weather checks, it is possible in some cases to cut a
trench through it by means of a tractor plow. This
outfit can also be used in loam or sand but will not dig
nearly so deep as the trenching machine. The plow
cuts a furrow and partially clears it, the final clearing
of the trench being accomplished by means of manual
digging.

Wliere the rock is too hard or too solid for the
trenching machine or tractor plow, compressed air
equipment is used.

The air compressors for this class of work are
mounted on trucks in order to give them maximum
portability. The largest tires which can be applied to
the truck are used, so that it will negotiate as much of
the private right-of-way as possible, with its own
motive power, '\\rhere this is not possible, it is towed
behind a tractor.

Laying Tape- Armored Cable

The method most generally used thus far, for laying
the tape-armored cable in the trench, has been to feed
it off the rear of a caterpillar type trailer. The tractor
and trailer, due to their long broad tracks, can operate
astride the open trench, lay off the cable from the reel
while running along at a speed of about 3 miles per
hour and again cross over carrying the empty reel,
without injury to the trench or machinery, except in
very soft or sandy soil.

Where the traveling conditions permit, two reels are
delivered per trip. The cable is first fed off the rear
trailer, then from the front one by leading it over the
empty reel at the rear.

Locations are encountered along the trench where it
is not possible to lay the cable direct from the reel.
For such locations trench rollers are used and the cable
is pulled into the trench over these rollers by means of a
power winch line.

By using the trench rollers, the cable can be pulled

[300]

1. Eailroad Car Unloading Tackle.

2. Carload of Tape Armored Cable Eeadv to Lkave Kearny Plant op Western
Electric Co.

3. Transferring Cable Eeels from Railroad Car to Truck.

4. FouR-WiiEEL Drive Cable Delivery Truck.

5. Trenching 8oil which is Full of Flint Eock.

6. Trenching Machine.

7. Excavating \vith Compressed Air.

8. Mechanical Tamper.

9. Scraper Type Back Filler.

10. Drag Line Back Filler.

11. Tractor Plow Outfit.

l'> Lowering Wooden Manhole into Excavation.
13" Lowering Loading Coil Case into Manhole.

14. l)ori!i,K Trailer Outkit.

15. Trench Rollers.

16. Splice Case for Tape Armored ("ahle.

17. Laying Cable prom Caterpillar Trailer.

18. Arrangement of Cable in Loading Manhole.

19. Splice Covering for Cable in Fiber Conduit.

20. Concrete Post Marking the Location of Buried Cable.

Installation of New Types of Buried Toll Cable

under crossing pipe lines, highway pavements, rail-
roads, etc. The trench rollers are also used where soft
or sand}^ soil is encountered which would not support
the tractor and trailer over the trench.

Back-Filling

Where the excavated soil is on one side of the trench
as in trenching machine operation, the drag line type
of back-filler is applicable. This machine rapidly pulls
the dirt into the trench, a scoop full at a time, as it
moves along the side opposite the spoil pile.

A trench made by the plow has, of course, two small
spoil piles, one on each side of the trench. For this
condition a back-filler of the scraper type is used.

Tamping

Where a trench is located along a highway, it is
ordinarily necessary to tamp the back-filled earth. On
private property, the usual practice is to pile a ridge of
dirt over the filled trench, then leave it for the rain to
settle. However, if tamping is required, the same types
of machines are applicable as for the highway work.

Very few obstructions such as pipes crossing the
trench are encountered in buried cable installations,
due to the fact that they are not made in thickly settled
areas. The mechanical type of tamper is best adapted
to this kind of work because of its greater speed. How-
ever, an equally good, although somewhat slower job of
tamping can be done with compressed air tools which
are better suited for tamping around pipes or other
obstructions.

Splices in Buried Cables

At the locations of splices between consecutive
lengths of cable, other than at loading points, manholes
are not used. The trench is widened and deepened to
provide working space for the splicers and testers.

It is, of course, necessary to remove the tape armor
and jute servings from the ends of tape armored cable,

[301]

20

Bell Telephone Quarterhi

before splicing it. The splice is then made in the usual
manner, and subsequently, a cast iron splice case, made
in two halves, is bolted over the sjolice. Each end of
the case extends over the tape armor. This case which
is filled with a waterproof compound, jjrotects the splice
against mechanical damage.

In the case of the cable in fiber conduit, an opening
is left between the consecutive lengths of conduit at the
splice points, and the splice made between these lengths.
Upon completion of the splice a fiber sleeve is slipped
over it, overlapping the ends of the fiber conduit. Ring
wedges, also made of fiber, are driven in at the ends of
the fiber sleeve and serve to hold it in place as well as
to prevent the entrance of soil and water.

Pressure Testing

An interesting innovation in the case of the tape
armored cable consists in having the cable shipped from
the factory with gas pressure in each length. The ends
of the length of cable are equipped with valves that
permit the pressure to be read, by means of a portable
gauge, this being done before the cable is laid and the
trench back-filled. Upon completion of the splicing,
gas pressure tests are applied in the usual manner to
both types of cable to ensure the integrity of the sheath
and mped joints.

Loading Manholes

The manholes at loading points are installed at such
a depth that the roof is about two feet below the surface
of the ground. No manhole opening is used, the soil
being replaced over the roof so as to permit agricultural
operations to be carried on. The roof of the manhole is
made in sections which can be lifted off when occasion
requires the manhole to be entered subsequent to the
initial installation and thus provide space in which to
work. It will, of course, be necessary to excavate the
soil from above the manhole to enter it, but it is ex-

[302]

Installation of Netv Types of Buried Toll CaUe

pected that necessity for this will arise only infre-
quently. No floors are used, the loading coil casas
being buried in the earth bottoms of the manholes.

Since many of the manholes are located in private
property where they will not be required to support the
heavy loads imposed upon manholes located under high-
ways, they are sometimes built of creosoted wood
planks. In such cases the manhole is assembled above
ground at the point where it is to be used and lowered
into the excavation by means of a power derrick.

The special derrick equipment used for lowering the
wooden manholes is also employed in handling the
heavy loading coil cases subsequently installed in the
manlioles. The derrick is so arranged that it can be
lifted to any desired position and the loading pot raised
or lowered independently. The motor vehicle shown
handling the manhole and loading coil cases is equipped
with removable tracks which can be placed around the
wheels when it is desired to negotiate soft ground.

As will be noted in the illustration, the first loading
coil case is installed in a corner of the manhole and later
a second case will be placed in the corner at the opposite
end, where the stub cable can be brought into the main
cable in a second splice.

Maekees

While the cable generally traverses j)rivate prop-
erty where there would be little likelihood of its being
disturbed and damaged by subsequent excavations, this
is not always true where it crosses highways. Conse-
quently, at such points the cable is laid at a depth of
about four feet, and at each side of the road a concrete
post is set to indicate the location of the cable. A sign
mounted on each post so placed, warns persons who
might be engaged in excavating activities along the road
not to disturb the cable. Similar posts are set at prop-
erty lines intersecting the route of the cable and at other
points so as to assist the maintenance forces in locating

[303]

Bell Telephone Quarterly

the cable. Each of these posts carries a copper plate
on which is inscribed the serial number of the post, thus
affording association with the post locations on the map
record, and also other pertinent information, such as
the distance from the post to the cable.

In a short article such as this it is, of course, impos-
sible to cover the many details which must necessarily
be worked out by the engineering and construction
forces. These types of installation are now just get-
ting under way, and while there has been only a com-
paratively small amount of buried cable placed up to
the present time, plans are now being made for a num-
ber of additional installations. As more experience is
gained with this type of construction, new develop-
ments and refinements will doubtless be made in the
heavy handling machinery and in the methods. How-
ever, due to the general interest in buried cable, this
short review is given to indicate what is being done at
the present time.

304]

Long Distance Telephony in Europe

Foreword

WITH the opening of transatlantic telephone
service, international long distance telephony
took on a new aspect. The provision of a
telephone link between the Old World and the New
might be considered the opening phase of interconti-
nental and world wide telephony. In the following
article, Dr. King describes progress made in the exten-
sion and improvement of the long distance telephone
service in the Old World and the important co-ordinat-
ing influence of the International Consulting Commit-
tee for Long Distance Telephony in Europe known
as the C. C. I. Since the opening of transatlantic tele-
phone service between England and the United States
in 1927, additional channels of commimication have
been added and telephone users in the United States
now have telephone access to most of the important
countries of Europe as well as to Cuba, Mexico and
Canada. The development of international telephony
on a world-wide basis requires that we of the Bell Sys-
tem have an understanding of and a friendly interest
in the telephone problems of other nations, and as one
means to this end, the American Telephone and Tele-
graph Company is associating itself with the work of
the C. C. I. The organization and functions of the C.
C. I. will be explained in a subsequent article. The
author. Dr. E. W. King is a member of the staff of the
technical representatives in London of the American
Telephone and Telegraph Company. The Editor.

Long Distance Telephony in Europe

We in the United States have always stressed the
importance of nation-wide telephone service and are
now proud of the fact that the present scope of our
communication system is not even limited by our na-
tional boundaries but embraces the greater part of the

f 305 1

Bell Telephone Qiiai'terhj

telephone-using World. The opening of transatlantic
service in January, 1927, marked a new epoch in tele-
phonic progress. The calls that pass to and fro over
the three transatlantic circuits average upward of 1200
per month— a ten-fold increase in traffic since the initia-
tion of this service— and naturally constitute a very

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(As OF AUGUST 1. 1929)

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FIGURE 1

substantial basis for American interest in European
telephony.

A complete description of long distance telephony
in Europe would be far beyond the scope of a single
article, and of the various angles from which it might
be treated, an introductory discussion may well be lim-
ited to a consideration of the inherent difficulties that

[306]

Long Distance Telephony in Europe

have opposed long distance telephone development on
the eastern side of the Atlantic, and the extent to which
these have been overcome.

Long Distance Calls in Europe

Considering the peculiar difficulties that have had
to be overcome, the developments of the last four or five
years in long distance telephony between the leading
nations of Europe are remarkable. The network of
international connections now embraces all of western
Europe, as is indicated in the accompanying chart. Fig.
1, and the nations of eastern Europe are rapidly being
connected in.

BUSY HOUR DELAY ON LONDON - PARIS CIRCUITS

80,;

\/

- 60

I 40

1
20

0

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/ \.

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m..

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JAN. APR. JUL. OCT. JAN. APR. JUL OCT. JAN. APR. JUL OCT. JAN. APR. ^ JUL OCT.

1928 1929

1925

1927

Figure 2

Nor do these connections represent only single lines
or small groups of lines so burdened with traffic as to
make exasperating delays the common rule. It is well
recognized in Europe that speed of service and a reas-
onable rate stand equally in importance with good wire
connections. In all of these respects most creditable
progress is being made. Delays have been everywhere
reduced during the last three or four years ; on most of
the main international routes cuts range from a reduc-
tion of from one-half to one-fifth of the time previously
required, and even more. On the London-Paris cir-
cuits (of which there are twenty-two now) the average

[307 1

Bell Telephone Quarterlif

busy-hour delay has been reduced from an average of
seventy minutes in 1926 to twelve minutes for the first
half of 1929. During this same period traffic has risen
from about 1000 calls a day to about 1600, an increase
of over 50 percent. The month-to-month variations of
delay are shown in detail in Fig. 2.

On the long routes, say, over 500 miles, which were
available three or four years ago, delays of one and a
half or two hours on calls booked in the morning were
an everyday occurrence. Delays of this character are
now quite exceptional.

The progress that the telephone has made in Europe
within the last few years is remarkable when considered
by itself, but it becomes much more remarkable when
we bear in mind the imposing phalanx of difficulties
which its advancement has had to meet.

The opening of our first transcontinental line dates
from 1915. This event marked the commercial advent
of the repeater employing high-vacuimi thermionic
tubes. In the United States this repeater was at once
adopted into the telephone plant and everyone is now
familiar with the wholly new aspect it, together with
many other improvements, has given to long distance
telephony. In Europe, however, the War was then in
progress and not for another five years at least had
international relations approached sufficiently near
normal that the building and operation of new inter-
national telephone lines could be contemplated. Long
distance telephony as we understand it in terms of the
present technique dates therefore in Europe from about
1920 and its span of life has been a scant two-thirds of
that it has enjoyed in the United States. As a matter
of fact, there were until as late as 1925 very few inter-
national agreements regarding the building of tele-
phone lines across national boundaries and the ex-
change of telephone traffic. However, those who have
acted in Europe as advisers and directors for the tele-
phone have worked so effectively that the service is
fast api^roaching the most up-to-date standards.

[308]

Long Distance Telephony in Europe

European telephony is today a splendid example
of friendly international co-operation. Each nation
builds and maintains all lines within its boundaries
whether these are used for internal or for through
(''transit") calls. Not only the question of the num-
ber of through circuits which any nation supplies to
neighbouring nations is subject in the last analysis to its
own decision without interference from without, but
this is equally true of the myriad electrical factors or
properties of each of its telephone lines. Were each
nation to take a purely selfish view, determining these
factors on a nationalistic basis and without regard to
the telephone networks in nearby countries, the physi-
cal, and therefore the fundamental, basis of long dis-
tance telephony would vanish, and any attempts at
international communication by word of mouth would
be largely frustrated. A remarkable spirit of give-
and-take has prevailed and thanks to certain unifying
influences, the more important of which will be dis-
cussed presently, Europe now possesses a notable inter-
national telephone plant. Today one can ask for a
connection from London to Paris, Geneva, Berlin or
Stockholm— merely to mention typical cases, with as-
surance of having a circuit of very satisfactory clear-
ness placed at his disposal.

As typical of the growth of international traffic.
Figure 3 shows the trend of calls between England and
France, England and Germany, and England and
Switzerland.

Some of the most important long distance lines in
Europe cross intermediate countries and their construc-
tion and operation require an international point of
view and noteworthy international co-operation. Thus,
lines between England and Germany must cross either
Belgium or Holland and the portion of each circuit
lying within the boundaries of the transit country is
built and maintained by that country. The Telephone
Administration of the transit country is the final
arbiter as to the number of through lines it will provide

[ 309 ]

Bell Telephone Qvarferlif

and the rates it will charge for their use. Transit
countries, therefore, play a very fundamental part in
determining the quality of international service and
good service requires that each such country provide
an adequate number of lines for other countries ' traffic
on acceptable terms.

NUMBER OF CALLS PER DAY BETWEEN ENGLAND
AND THE COUNTRIES INDICATED BELOW

Figure 3

It may be said in regard to provision of plant, as
distinct from questions of operation and rates that most
transit countries have adopted a far-sighted policy, and
have laid expensive cables freel}^, to provide for con-
siderable growth of traffic passing through their ter-
ritory. Indeed, the development of European inter-
national traffic witnessed during the past few years has

[310]

Long Distance Telephony in Europe

been in no small measure due to such international-
miudedness.

Adjustments Rate

The question of rates on international calls also
presents many complexities. On the one hand, transit
countries might naturally be expected to measure the
satisfactoriness of a rate largely in terms of the return
it nets them on their investment. Terminal countries,
on the other hand, while naturally having the same
interest in the return, also associate with rates the
question of whether or not they are giving satisfaction
to their citizens who use the service. At the same time,
the transit country is likely to consider, and with some
misgiving, that a rate quite satisfactory from the user's
point of view will in a short time create a demand for
more through circuits and therefore for an increased
capital investment on its own part. With finances on a
normal footing no embarrassment would accrue from
such growing demands, but because of post-war strin-
gencies most of the nations of Europe have had to con-
sider capital outlays very carefully. Such problems as
these are, however, rapidly yielding to solution, and the
experts who are struggling with them are of course
greatly aided by the fact that the telephone business,
wherever wisely administered, has always proved quite
a])le to pay its own way.

The question of international rates also brings into
consideration the varying cost indices between nations.
As closely associated as they are, the various countries
of Europe differ considerably in the matter of cost
levels. A rate satisfactory to a country of low costs
would obviously not ensure an adequate return on
equivalent telephone plant in a country of high costs.
Here again, however, a working agreement has been
arrived at, and under its influence, together with that
of a steadily increasing supply of modern circuits, in-
ternational traffic is growing by leaps and bounds.

[311]

Bell Telephone Quarterly

The Proble:m of Language

Another ever-present difficulty concerning long dis-
tance telephony in Europe is that of languages. This
manifests itself in two distinct ways. One is the hin-
drance it interposes to those who would like to use the
international telephone; the other is presented in the
operation of international circuits. The language dif-
ficulty is not so great in the case of neighbouring nations
such as France and England or Germany and Denmark,
because in advance of the telephone, immediate geo-
graphical proximity had already spread some knowl-
edge of each country's spoken language over the bound-
ary into its neighbour's territory, but it becomes of no
inconsiderable magnitude in the case of calls between
widely separated countries, as between Sweden and
Spain, or Poland and Italy, or England and Czecho-
slovakia. In the case of such countries, the citizens
engaged in international business are for the most part
quite unfamiliar with each other's speech and usually
conduct their international business by mail or tele-
graph with the aid of foreign correspondence clerks,
i.e. translators with special linguistic training. Con-
sidering that in such cases the general use of the tele-
phone involves new mental equipment and a new busi-
ness technique, the comparative rapidity of its growth
is remarkable.

From the operating point of view also, the language
separation involves special difficulties which are, in
fact, far more serious than those arising from separa-
tion in space. These difficulties are minimized where
through circuits between the terminal countries are
available, and this we might say is the normal method
of providing international telephone connections.
Even so, to take specific cases, it is not very practicable
to provide operators in England who can speak Spanish
and Italian, and in Madrid and Rome who can speak
English. In general too many languages would be in-
volved ; or to put it another way, the number of through

[312]

Long Distance Telephony in Europe

circuits now in existence between each pair of countries
is not large enough to warrant the maintenance of
groups of reserve and emergency operators, one group
for each pair of languages. In the cases cited of
Anglo-Spanish and Anglo-Italian circuits this difficulty
is overcome by the use of French for operating, because
groups of French-speaking operators are, in any case,
required to work the circuits to the intermediate
French-speaking countries. Similarly in the case of

TELEPHONE TRAFFIC BETWEEN ENGLAND AND HUNGARY

is; 10

A

/

1

\

r

/

A

/^\

V

f

r

/

1928

1929

Figure 4

other groups of through lines, a suitable common lan-
guage is employed.

In most cases where a circuit has to be built up spe-
cially for a long distance international call, the lan-
guage difficulty is much aggravated. In these circum-
stances built-up circuits are only used in European
international service in the early stages of traffic de-
velopment or for the routing of emergency calls in the
case of break-downs. *' Through" circuits are per-
manently put in service between selected cities in the
terminal countries as soon as the traffic is sufficient to

[313]

Bell TelepJione Quarterly

fill even one circuit. Transit traffic and the number of
long through circuits required to handle it are rising
with the general tide, as witness the record of traffic
between England and Hungary as shown in Figure 4.

Telephone Systems in United States and Europe—

A Contrast

The preceding paragraphs do not propose to be a
complete catalog of the peculiar and unique difficulties
which long distance telephony has had to face in Eu-
rope, but the points enumerated will serve to show the
great need that Euro]3e has had of some central guiding
and unifying influence. Europe has possessed none of
the centralized departments which we prize in the Bell
System, such as a central laboratory for development,
a headquarters engineering staff to study and advise on
field conditions and to standardize design, a centralized
control of patents, making them equally available to all
operating units and finally and equally important, ma-
chinery for establishing standard operating practices.
It can truthfully be said that the successful working out
of long distance telephony in the United States has sup-
plied an ever-present illustration of what international
telephony in Europe might attain to, and without our
success overseas to point to, the path of its advocates
would have been much rockier.

However, Europe could not have achieved its rapid
progress in international telephony without some very
definite guiding and unifying influence. Natural^,
the need of some permanent international machinery to
direct the progress of international telephony has long
been recognized, and doubtless would have sprung into
existence years before it did had it not been for the
War. Indeed, there have existed for many years such
illustrative organizations as the Universal Postal
Union and the International Telegraph Union, with
their j^ermanent secretariats and periodic congresses.

As has already been pointed out, international tele-

[314 1

Lonq Pififnvre Telephom/ in Europe

phony presents many nnique diffienlties. No special
precision of adjustment is required for the transfer of
mail, freight and passengers across national boundaries,
and even the problem of international telegraphy is
simple compared with that of telephony. The electric
circuit which transmits a telephone message must op-
erate as a single unit from end to end. Transmission
standards as expressed by the various European nations
in transmitter and receiver efficiency, in the behaviour
of repeaters, in the design and spacing of loading coils,
and in countless other respects, have had to be adjusted
to a basis of practical equality.

In large measure the influence guiding telephony in
Europe-has been supplied by a voluntary organization,
made up of representatives from each of the national
telephone administrations. This Association, known
as the International Consultative Committee for Long
Distance Telephony in Europe— or C. C. I. for short-
came into existence in 1924 as the outgrowth of an in-
formal advisory committee which originated about one
year earlier. It has been said that the initial meeting
of the C. C. I. was perhaps the first occasion after the
War when official representatives of the formerly com-
batant powers, other than soldiers and diplomats, met
around the conference table. Whether this is true or
not, it can safely be said that the meetings and confer-
ences of the C. Q. I. represent as fine an international
spirit as has been manifested by any gathering of repre-
sentatives of the Powers ; and to this, one can scarcely
refrain from adding that, by labouring on behalf of
international telephone service, they have conspicu-
ously advanced the basis of understanding between na-
tions and the cause of permanent peace. We in the
United States have always considered the telephone as
an outstanding instrmnent of service, and it is gratify-
ing to see it now so established in Europe that it is be-
ofinning to prove its power in this respect.

R. W. King.

[315]

1929 Convertible Bond Offer of the Amer-
ican Telephone and Telegraph Company

THE American Telephone and Telegraph Com-
pany offered to its 455,000 stockholders of record
on May 10, 1929, $219,112,700 of Ten- Year Con-
vertible 4J% Gold Debenture Bonds due July 1, 1939,
in the proportion of $100 principal amount of bonds for
each six shares then held. The bonds were offered for
subscription at face value and pajmient in full was due
July 1, 1929. The offer was not underwritten.

The principal amount of the issue, $219,112,700, rep-
resents the largest financing ever undertaken by the
Bell System, and is believed to be the largest ever of-
fered to stockholders for subscription by any corpora-
tion; the 1928 stock offer of the American Company
amounting to about $185,000,000 doubtless having pre-
Adously held the record. If all of the bonds should be
converted into stock at $180 per share during 1930
under Option (a), the Companj^ would receive an addi-
tional $175,000,000 or a grand total of nearly $400,-
000,000.

The purpose of the offering was to provide fimds
for the payment of approximately $75,000,000 Collat-
eral Trust Four Per Cent. Bonds of the Company
maturing July 1, 1929, and for new construction which
is required by the Bell System to care for additional
business resulting from the continuously increasing use
of telephone ser\dce. In the current year more than
$550,000,000 will be spent on plant additions, better-
ments and replacements. This is the largest program
in the history of the Bell System and similar large
expenditures are planned for the years to follow.

[316]

1929 Convertible Bond Offer

Terms of the Issue

The bonds are convertible into stock of the Company
during the period January 1, 1930 to December 31,
1937 at the conversion price of not more than $180 per
share for the year 1930, $190 per share for the years
1931 and 1932 and $200 per share for the remainder of
the period, provided, however, that bonds called for
redemption on any date within the conversion period
mdij be surrendered for stock not later than their re-
demption date. The conversion prices are subject
to reduction upon the issue from time to time of addi-
tional stock by the Company in accordance with the
terms of the indenture. In converting, the bondholder
may take (a) one share of stock for each $100 principal
amount of bonds surrendered, on payment in cash of
the difference between the conversion price then in ef-
fect and $100, or (Z>) he may take as many shares of
stock as the principal amount of bonds surrendered is
a multiple of the conversion price then in effect, and
if there is a remainder the bondholder may take one
additional share on pajanent in cash of the difference
between the current conversion price and such re-
mainder. When the bonds are selling at a market price
above their principal amount it will usually be ad-
vantageous to the bondholder to convert under Option
(a).

Results of the Issue

In recent months, the general investing public has
shown a slackened interest in bonds except those with
stock privilege features. Convertible bonds have
proven quite attractive however, and this fact contrib-
uted to the marked success of the convertible bond
offering of the American Company. A total of 165,-
000 subscriptions was received, exceeding that for any
previous Bell System bond issue. In addition there
were many subscriptions filed by banks and brokers for
individual investors which cannot be identified as such

[317]

21

Bell Telephone Quarterly

and are accordingly excluded from tlie count. Only
one-half of one percent of the rights was allowed to
lapse. These are satisfactory results, especially when
it is considered that of the 455,000 stockholders en-
titled to subscribe, relatively few had had previous ex-
perience with convertible bond offers.

Due to the changing conditions in the securities
market, which had their effect on American Telephone
stock and thus on the rights, the price of the latter ex-
hibited rather marked variations during the subscrip-
tion period. The day of the announcement of the is-
sue, April 30, rights sold as high as $7 J. During May
the general price trend was downward and a low of $3
was reached on several days at the end of the month.
June witnessed a reversal in trend, the price rising to
a high of $8 on June 29, with a final price on the New
York Stock Exchange of $75.

As has always been the case when the American
Company offers securities to stockholders, the bulk of
the subscription payments is received at the very end
of the period. Banks and brokers especially, making
payment for their own and for their clients' accounts,
observe this practice in order to save interest. Of a
total of $218,000,000 received, only $35,000,000 had
reached the Company and been deposited by June 27,
four days before the expiration date. On July 1 alone,
over $106,000,000 was received and deposited.

To add to that day's volume of business the Treas-
urer's Office issued checks for $60,000,000 in payment
of Collateral Trust Four Per Cent. Bonds maturing
then and presented on or before July 1 and also $2,730,-
000 in payment of bond coupons due July 1. That part
of the proceeds of the convertible bonds not required
for inmiediate use was invested in short term securities
of unquestionable safety, principally government and
mimicipal obligations.

A resume of the results of the bond issue is set forth
in the following table :

[ 318 ]

1929 Convertible Bond Offer

TABLE I

Statistics on the 1929 Convektiblk Bond Issuk

Principal amount of bonds offered $219,112,700

Approximate amount of bonds subscribed $218,000,000

Percent subscribed Pi??cn

Number of stockholders of record 455,160

Approximate number of subscriptions 165,000

Subscriptions in percent of stockholders 36%

Average principal amount offered, per stockholder $481

Average principal amount per subscription $1,314

Aid Given Stockholders

In accordance with the Company's policy of en-
deavoring to offer special assistance to those of its
stockholders who seemed most likely to require it, in-
dividually addressed letters were sent on May 22 to
8,000 individuals entitled to subscribe who had failed
to exercise their rights to the 1928 stock issue. The
communication explained that the 1929 rights had value
and that they should either be used in subscription or
be sold for cash by July 1. These stockholders had, of
course, already been sent the circular of April 30 an-
nouncing and giving full details of the ternis of the
offer and also the circular of the Bell Telephone Securi-
ties Company which accompanied the warrants mailed
on May 20 to all stockholders. The latter communica-
tion included a list of simplified questions and answers
about the issue and an order form to facilitate the pur-
chase or sale of rights through the Bell Telephone
Securities Company.

As in the case of the 1928 stock issue, the Associated
Companies were furnished with the names and ad-
dresses of those of the 8,000 stockholders who lived in
their territory, and attempts were made to reach these
individuals personally before the close of the subscrip-
tion period. In cases where a telephone conmiunica-
tion was insufficient, a fuller explanation was given in
a personal interview by a Company representative.
These stockholders were, with few exceptions, of
limited means and the ones who could least afford to
sacrifice the value of their rights.

[319]

Bell Telephone Quarterly

Through these varied means, the interests of thous-
ands of stockholders were protected, and as had been
the previous experience, many of them expressed their
appreciation for the assistance received.

Other Assistance Rendered

' Over 385,000 stocldiolders or 85 percent of the total
stock list received fractional warrants, some with and
some without full warrants, and all of these fractional
warrants had to be pieced out in order that they might
be utilized in subscription, or which could be sold. In
order to facilitate these transactions for the stock-
holders residing in all parts of the country, the Bell
Telephone Securities Company as in the past offered its
facilities for the purchase or sale of rights and the filing
of subscriptions both at its home office and through
most of the business offices of the Associated Companies.
Transactions in rights in the field averaged about
7J rights, while subscriptions filed averaged about $425.
An idea of the extent to which these facilities were
utilized may be gained by the fact that of a total of
154,000 transactions for the purchase and sale of rights
effected through the Securities Company, 103,000 were
handled through the field. The latter figure compares
with about 76,000 transactions so handled in the field
during the 1928 stock issue and represents more than a
one-third increase in activity. In addition over 31,000
completed subscription transactions were handled
through the Associated Companies. The stockholders
in the western states, as was the case last year, were
the ones who availed themselves most largely of the
facilities offered through the Associated Companies.

The following table gives data on rights purchases
and sales and subscriptions filed through the Associated
Companies rendering aid during the bond issue.

[320]

1. A VIEW OP THE Communications Bureau with the Mail Section and Eights
Bureau in the background.

2. A' portion of the Subscription Eeviewing and Recording Sections with the
Bond Issue Cash Bureau in the foreground.

3. A UNIT OF THE BOND DELIVERY SECTION METERING REGISTERED MAIL ENVELOPES
PREPARATORY TO MAILING.

4. A SECTION OF THE BOND DELIVERY ORGANIZATION SHOAVING EMPLOYEES ENGAGED
IN COUNTING BONDS, RECORDING THE ALLOTMENT TO INDIVIDUAL SUBSCRIBERS AND ENCLOS-
ING THE BONDS IN EN\-ELOPES.

5. A VIEW OF THE MAILING UNIT OF THE BOND DELIVERY ORGANIZATION SHOWING
REGISTERED MAIL ENVELOPES BEING PREPARED AND CHECKED PRIOR TO DELIVERY TO THE
POST OFFICE.

1929 Convertible Bond Offer

TABLE II

1929 Bond Issue Th.a.nsactions Handled Locally by Associated Companies

FOR THEIR Patrons

Purchases and Sales
of Rights

Subscriptions
Filed

Associated Companies

Number
of Trans-
actions

In Per-
cent of
Stock-
holders

Resident
in the

Territory

Number
of Trans-
actions

In Per-
cent of
Stock-
holders

Resident
in the

Territory

New England Tel. & Tel. Co. . . .
Southern New England Tel. Co. .
New York Tel. Co

3,072

800

12,011

3,188
11,642

5,112

4,119

3,039
960

4,156
15,234

5,891
11,892

4,290
17,541

3.0
5.7
14.2
12.2
27.3
27.6
25.3
43.9
38.8
49.9
34.9
49.3
55.8
45.6
48.6

1,106

165

3,629

818

3,365

1,366

971

622

135

1,208

4,607

1,566

3,363

1,358

7,491

1.1
1.2
4.3

New Jersey Bell Tel. Co

Bell Tel Co. of Penn

3.1
7.9

Chesapeake and Potomac Tel. Co.

Southern Bell Tel. & Tel. Co

Michigan Bell Tel. Co

7.4
6.0
9.0

Indiana Bell Tel. Co

5.5

Wisconsin Tel. Co

14.5

Illinois Bell Tel. Co

10.6

Northwestern Bell Tel. Co

Southwestern Bell Tel. Co

Mountain States Tel. & Tel. Co. .
Pacific Tel. & Tel. Co

13.1

15.8
14.4
20.8

Total

102,947

23.1

31,770

7.1

Thus in all parts of the country the Bell System
facilities aided stockholders, and especially small stock-
holders, in handling their rights. In addition through
the New York and Boston offices of the American Com-
pany, the Securities Company handled a total of 51,000
transactions in rights as against 45,000 of such trans-
actions in 1928, the majority of these being handled by
mail. These transactions averaged in size 8H rights.

Organization and Personnel

As is the case of stock offers, this convertible bond
issue was handled by the Treasury Department. Al-
though its permanent personnel is experienced in con-
ducting stock issues, there were many problems of a
different nature to solve, as for example, that of pro-

[321]

Bell Telephone Quarterly

duction in various phases of the work, the estimation of
personnel requirements and the handling and delivery
of bearer securities. Stock issue methods were used
as much as possible, but there were some operations for
which no recent precedent existed and which required
the development of entirely new practices.

The bonds were issued in the form of temporary
bearer certificates with the first two semi-annual inter-
est coupons attached, these temporary bonds being ex-
changeable on and after October 1, 1930 for the
definitive bonds with all subsequent coupons attached.
This plan of issuance was decided upon as more prac-
tical and economical than that of issuing temporary
interim receipts and then, prior to the date of the first
interest payment, exchanging them for the engraved
bonds with all coupons attached. As it seemed prob-
able in the light of past experience that numbers of
bondholders would convert their bonds before October
1, 1930, the number of pieces of the definitive bonds to
be produced, authenticated and exchanged should be
substantially reduced and the saving to the Company
effected by this plan should be of substantial size.

To assist the permanent employees of the Treasury
Department in handling the bond issue work, a force of
about 600 temporary employees was utilized, this peak
being reached, of course, near the close of the subscrip-
tion period. The number of temporary employees in
the 1928 stock issue, however, exceeded this total by
about 125.

The quality of the temporary personnel was high.
Although the bond issue began during a period when
it was not possible to obtain as high a percentage of
men from the colleges at the beginning of the issue as
was done last year, nevertheless, as time passed and
more students, recent graduates, and instructors be-
came free for summer employment, nimibers of them
were added to the organization. A total of 189 men
from 76 colleges and universities were engaged. These

[322]

1929 Convertible Bond Offer

men were of the ij^Q which i^roved very adaptable to
their new conditions. In addition, more than a score
of permanent employees from other parts of the Bell
System filled positions of responsibility.

PERMANENT AND TEMPORARY EMPLOYEES
TREASURY DEPARTMENT

1929 CONVERTIBLE BOND ISSUE

1000

800

600

400

200r

/

'/ '/ ■

X

TOT

AL E

^PLO

'EES

^

y

k

^

k'

EMPORAPr i :

\

1

'.':'■■,''',[''.

■

1000

800

600

400

200 ^

„iJiii(

16 23 30 6 13 20 27 4 11 16 25
MAY JUNE JULY

WEEK ENDING

With such an increase in the work and in the per-
sonnel of the Treasury Department, available quarters
at 195 Broadway were quite inadequate. Consequently,
the entire sixth floor of the New York Federal Reserve
Bank Building, containing 33,000 square feet of addi-
tional office space, was engaged, and 560 employees, the
bulk of the bond issue organization, were moved there.
While this division in the Treasury Department forces
was not an ideal arrangement, automobile messenger
service at frequent intervals proved satisfactory in
linking the whole organization together. The accom-
panying illustrations show various sections of the bond
issue organization in the process of handling their work.

The data on the volume of mail give one an idea of
the size of the imdertaking. About a million and a
quarter pieces of bond issue mail were sent and received,

[323]

Bell Telephone Quarterly

and at the same time, of course, the regular Treasury
Department correspondence was handled, and the regu-
lar July dividend checks to over 455,000 stockholders
were prepared for release.

Although the bond issue correspondence was some-
what less in volume than was last year's stock issue cor-
respondence, it was of a more difficult nature to answer,
due to the lack of knowledge of large numbers of stock-
holders concerning this type of financing. The chart
below shows the amount of subscription correspondence
and telephone calls received by weeks. Of a total of
over 100,000 incoming letters, about 35,000, those rep-
resenting incomplete and irregular subscriptions, were
referred to the special organization handling the cor-
respondence work. Of the latter total almost one-half
required the preparation of special replies.

AMOUNT OF SUBSCRIPTION CORRESPONDENCE

AND TELEPHONE CALLS RECEIVED

40,000
30.000
20,000

1929 CONVERTIBLE BOND ISSUE

40,000
30,000
20,000

/

\

/

)

\

1 0,000
0

SUBSCRIPTION
CORRESPONDENC

f

\

\

1 0.000

^

/

T

£LCPHOr
CALLS-

**^

-\

^^

I 11 18 25 1 6 15 22 29 6 13 20 ' 2

7

MAY JUNE JULY

WEEK ENDING

As indicated by the chart on the next page, the sub-
scriptions did not flow in evenly over the entire period
but rose to a sharp peak at the close. For example, the

[324

1929 Convertible Bond Offer

number of subscriptions received through the middle of
June represented less than one-sixth of the ultimate
total. The work involved in correspondence and in the
rights purchase and sale transactions also, experienced
marked peak loads, and on July 1 the operation of
delivering the temporary bonds to the subscribers
began.

NUMBER OF SUBSCRIPTIONS RECEIVED WEEKLY

(CUMULATIVE)

1929 CONVERTIBLE BOND ISSUE

175,000

175.000

>

150,000

/

150.000
125000

/

125.000

/

100.000

/

100000

/\

75.000

75.000

50.000

50.000

^

^^^

25.000

25.000

^^^.^"^

0

^ ^^

i

0

5

2

5

\ 8 15 22 29

MAY

JUNE JULY

WEEK ENDING

This problem of delivering the bonds was one of the
most important confronting the Treasury Department
on which no help could be had from past stock issue ex-
perience. In order to fill the subscription allotments
307,600 $100 pieces, 39,700 $500 pieces, and 167,350
$1,000 pieces, or a total of 514,650 pieces were required.
Wlien it is considered that these bonds are in bearer
form, an idea may be gained of the great responsibility
placed upon each employee engaged in bond delivery
work. It is a credit to all concerned that these bonds
went through all the necessary steps of the routine from
receipt at the vaults to delivery to the post office with-

[325]

Bell Telephone Quarterly

out the loss so far as is now known of a single piece by
the Treasury organization.

Needless to say, in order to achieve this result, ex-
treme care and frequent verifications were necessary.
The bonds were delivered to the main vault, located not
far from the 195 Broadway offices, where complete
count was made by designated officials. Great care was
exercised in their subsequent transfer to the secondary
vaults for counter delivery at 195 Broadway, and for
the mailing unit located in the Federal Reserve Bank
Building. Upon their receipt there and again prior to
their dispatch to subscribers either by mail or by de-
livery at the counter, additional verifications were ef-
fected. In mailing, special precautions were taken in
order that the bonds be allotted in the correct amount
and in the correct denominations. To insure such ac-
curacy each subscription was handled by two persons :
the first man counting the bonds and recording the al-
lotments to the individual subscribers, and the second
man verifying the allotments and enclosing the bonds
in envelopes. After final verification, the 130,000 spe-
cially manufactured envelopes needed for mailing the
bonds had to be sealed by hand, an operation which re-
quired fifty gallons of mucilage.

The affixing of the postage to such a quantity of
registered mail was accomplished in a unique and un-
usually efficient manner through the use of newly de-
veloped postage meter machines. These machines,
which were the first of their kind to be put in practical
operation, were specially adapted for the use of the
American Company on this w^ork, being so adjustable
as to imprint on the envelopes varying amounts of reg-
istered postage according to the different weights of the
individual pieces of mail involved. Besides being
speedier than the old method of affixing stamps by hand,
these machines eliminated the problem of maintaining
a supply of registered mail stamps in varying amounts
and accounting for their use, since the meters attached

[ 326 ]

1929 Convertible Bond Offer

to the machines automatically recorded this. In all,
over $24,000 meter postage was imprinted.

The convertible bond issue, the largest piece of Bell
System financing, was in all respects a success. The
financial press spoke well of the issue, a substantial
interest was manifested by bankers and brokers, and a
wide-spread distribution of the bonds was obtained
which has broadened the investment interest in the busi-
ness. The stockholders were aware or were made
aware of the value of their rights to such an extent that
only a negligible percentage was allowed to lapse, and
many pleasant public relations contacts were estab-
lished in all parts of the country through Bell System
employees. Sincere appreciation is due these em-
ployees, both permanent and temporary, who con-
tributed to the success of the issue by their loyal and
effective work.

H. Blaik-Smith

[327]

Listening Device Aids in Combating the
Fruit Fly Pest in Florida

Editor's Note: Surveying every -field of scientific
endeavor to find means to combat the ravages of the
Mediterranean fruit fly, it occurred to the entomologists
of the Bureau of Plant Industry, U. S. Department of
Agriculture, that the presence of the larvae within the
fruit might he detected hy a sensitive electrical stetho-
scope.

Dr. David Fairchild of the Department of Agricul-
ture asked President W. S. Gifford of the American
Telephone and Telegraph Company for assistance in
the very urgent problem at hand. A deputation from
the Technical Staff of the Bell Telephone Laboratories,
tvith appropriate apparatus, was promptly sent to
Florida.

The story of the application of telephone research to
the study of a problem in nowise connected with com-
munication is told by Mr. D. G. Blattner tvho ivas in
charge of the work.

T

"^HE business of being a telephone engineer some-
times leads to unusual experiences far afield
of the telephone business. Such experiences
usually result from the interest shown by the Bell Sys-
tem in the problems of the public, and from the intense
interest on the part of the public in the many eom-
municational developments that are going on about us.
It was, therefore, not surprising that when the govern-
ment entomologists discovered the presence of the
dreaded Mediterranean fly in the Florida citrus fruit
district that they should have called upon the Bell Sys-
tem for assistance.

The Mediterranean fruit fly was first observed in
fruit from the Azores about a hundred years ago and

[328]

Listening Device and Fruit Fly Pest

since that time the growing of fruits that serve as hosts
to the pest has been seriously handicapped the world
over except in continental United States. The dis-
covery of the pest in the United States might, therefore,
be reasonably expected to cause alarm. Moreover,
w^hen it is recalled that the list of fruits that serve the
fly as hosts is a long one, including practically all of
our conmion fruits, and many of our vegetables, it is no
wonder that every possible facility for combating the
pest should have been resorted to.

The Mediterranean fruit fly is similar in size and
general appearance to the conmion house fly except for
its markings, its general adaptability to its own par-
ticular purposes, and its vastly greater hardiness. In
appearance it has a series of brownish yellow stripes
across the body and wings, and altogether, might be con-
sidered as rather chic. As to its adaptability and
hardiness, it appears that the female is able to deposit
her eggs at just the proper depth below the fruit rind
regardless of the thickness of the rind and while the fly
cannot withstand freezing temperatures, it appears to
be able to stand temperatures about as low as the fruit
that it attacks. As for its likes and dislikes, it appears
to have no difficulty in choosing the fruit most to its lik-
ing and while as a larva it appears to have well defined
ideas about how a respectable larva should pupate, it
can and will adapt itself to almost any condition which
may be imposed upon it. The whole life cycle of the
fly may take place within a period of from two wrecks to
six months, depending upon the conditions, and one fly
has been known to lay as many as 800 eggs. If it is
assiuned that for such favorable conditions as exist in
Florida the complete life cycle takes place in a month,
and that the fly as such lives to an age of four months
and produces an average of 400 eggs, half of which
hatch out to be females, a single fly might produce a
horde of about 35,000,000,000 members in a period of
six months except for deaths in the family from time

[329]

Bell Telephone Quarterly

to time. In other words, if every person in the United
States were to eat an orange a day, it would require a
year for the present population to consume as many as
this one fly and her offspring might destroy in six
months from the date of her maturity.

The destruction of the fruit by the Mediterranean
fly is accomplished during the larva stage of develop-
ment. Because of its '' Volsteadian " sentiments, the
larva, unlike many other larva, completely riddles the
fruit in its efforts to keep in advance of the fermenta-
tion of the fruit juice that accumulates about it. To
enable it to make rapid progress in its burrowing it is
equipped with two spine-like hooks with which it tears
the tissue. It occurred to the entomologists on the job
that perhaps the Bell System might be able to provide
apparatus by means of which the tearing of the fruit
tissue might be detected. The situation was brought
to the attention of President Walter S. Gifford of the
American Telephone and Telegraph Company by Dr.
David Fairchild of the United States Department of
Agriculture and the present writer with one of his as-
sociates were dispatched from the Bell Telephone
Laboratories to Orlando to see what might be done.

In consideration of the problem it seemed reason-
able to expect that the larvae might expend energy in
the fruit in any of the following forms :

1. Acoustic effects from the larva direct.

2. Heat liberated as a result of the activity of the larva.

3. Muscular electrification of the larva.

4. Mechanical vibration of the fruit tissue caused by

the larva.

Of these, the first two forms were considered to be un-
important as a telltale of the presence of the larvae.
The sound generated, as heard in the fruit, would prob-
ably be very limited in amount and the fruit structure
is not a good sound transmitting medium while the heat
generated would be so small in amount and the thermal

[330]

Listening Device and Fruit Fly Pest

capacity of the fruit so large, that the temperature
change would probably be negligibly small. As for
electrification, it would seem that the chances of suc-
cess would be reasonably good when it is recalled that
the electrification of some of the smaller muscles of the
human eye is of the order of several microvolts. In
regard to vibrational energy it would seem that a
reasonable amoimt of vibration might be produced and
that it would be transmitted throughout the whole
structure of the fruit with reasonable facility. Fur-
ther it would be expected that the character of the
vibrations would be determined by the fruit structure
rather than by the maggot so that the sounds would not
vary with the size of the maggot. Because of these
considerations, it appeared that our chances of success
would be best if our efforts were directed along the lines
of the electrification and the vibration effects.

As for apparatus that might be used in detecting
vibrational effects, we were in a rather happy position.
The electrical stethoscope, an instrument developed a
few years ago to aid in the instruction and training of
student physicians and to assist older physicians whose
hearing has become somewhat impaired, seemed to be
admirably suited for this particular problem. It was
planned that a fruit suspected of being infested would
be placed upon the stethoscope transmitter supported
on a vibrationless support, that the amplifier would be
turned on and such of the filters in the stethoscope as
might seem most suitable w^ould be switched in to ex-
clude extraneous noises. The results would be ob-
served by listening to a telephone receiver. In case the
maggot sounds could not be heard at the surface of the
fruit it was planned to replace the stethoscope trans-
mitter by a special electro-mechanical reproducer used
in theatre sound-reproducing systems and designed
with a long needle which might be inserted well into the
fruit. Also laboratory work involving the use of an
amplifier designed to give particularly low tube-noise

[331]

Bell Telephone Quarterly

and very great sensitivity was temporarily suspended
in order that we might have this device to use in case
the stethoscope amplifier was found to be unsatis-
factory/

Upon arrival in Orlando, we found that the ento-
mological forces had been highly organized for action,
that the national guard had been called out to aid in
carrying out the rather extreme measures that had been
decided upon, and that having an infested fruit in one's
possession was considered a grave offense. In spite of
these difficulties, however, we succeeded in getting a
few pieces of fruit that were thought to be infested and
the battle was on. Out of the first four such fruits,
three were found to be "noisy" and the fourth one was
** quiet." After demonstrating the sounds to the vari-
ous entomologists on the job, two of the *' noisy" fruits
were opened and found to contain active larvae while
the ''quiet" one was found to contain none.

Having thus shown the possibility of hearing the
larvas inside the fruit, the question was raised as to how
the detecting apparatus might be used to best advan-
tage. It was obvious from the start that as a means of
inspection of fruit for market, it would not be satis-
factory because of the time and expense involved. It
was found that the larvse were more active at certain
times of the day than at others and that during the
active periods they work more or less intermittently.
Testing of fruit would, therefore, have to be done oniy
at certain times and if the test lasted only a moment
there would be no assurance that the larvae might not be
resting at that particular moment. The listening ap-
paratus appeared to offer the greatest possibility of
service, rather, as a means of carrying on certain re-
searches. At the present time, means for controlling
or eliminating the pest are being worked out on the
basis of submitting a fruit to the ravages of the pest for
a limited time, after which it is opened for observation.

1 Test data indicate that the larva produces vibrations at the surface of
the fruit of the order of a hundredth of a millionth of a centimeter.

[332]

Listening Device and Fruit Fly Pest

The difficulty with such a method is that each indi-
vidual test is necessarily terminated after the first ob-
servation. By means of the listening apparatus, it
would be possible to continue the test on each particular
sample for such dui'ation of time as might seem
desirable.

D. G. Blattner.

[333]
22

Abstracts of Technical Papers from Bell
System Sources

Reciprocal Theorems in Radio Communication,^ by
John R. Carson. Two reciprocal theorems, the gener-
alized Rayleigh theorem and the Sommerfeld-Pfrang
theorem, are of great theoretical importance in radio
communication. A careful analysis of these theorems
and their mathematical derivations shows that they are
quite distinct and their practical fields of application
different. In particular it shows that the Sommerfeld-
Pfrang theorem labors under restricions, implicit in
its mathematical derivation, which seriously limit its
field of practical applicability.

Telephone Circuits for Program Transmission,- by
F. A. Cowan. Systems of telephone circuits which
are extensively used in the transmission of programs to
broadcasting stations are described in this paper. Cer-
tain stages in the development of these systems are
considered and the general requirements for satisfac-
tory transmission at the present time are enumerated.
The arrangements of the systems as well as the pro-
cedures used in setting up and maintaining them are
discussed.

Correlation of Directional Ohservations of Atmos-
pherics with Weather Phenomena,^ by S. W. Dean.
This paper analyzes some data on the direction of ar-
rival of static at Houlton, Maine, obtained by means
of a recorder and a cathode ray radio direction finder ;
and points out that in certain cases there is a relation
between the direction of static and the location of storm

1 Proceedings of the Institute of Eadio Engineers, Vol. 10, June, 1929, pp.
952-956.

2 A. I. E. E. Journal, July, 1929, pp. 538-542 (abridgment).

3 Proceedings of the Institute of Eadio Engineers, Vol. 17, July, 1929, pp.
1185-1191.

[334]

Abstracts of Technical xirticles

centers. Two cases are discussed in which day by day
bearings showed static sovirces in the direction of mov-
ing storm centers.

A Direct-Current Amplifier for Measuring Small
Currents* by J. M. Eglin. A direct-current amplifier
consisting essentially of a Wheatstone bridge, having
the amplifying tube in one arm and a balancing tube
in another, has been described by P. I. Wold and by
C E. Wynn-Williams. This circuit has noAV been de-
veloped to give a constant amplification for currents in
either direction up to 10,000 times the lowest measur-
able value. The amplification and the lowest measur-
able current are alterable together by changing the re-
sistance introduced between the grid and filament of
the amplifying tube. With tubes of high insulation,
the amplification can be made as large as 10' ; and the
measurable current as low as 10''* ampere. Some im-
provements of the circuit are: (1) the insertion of a re-
sistance in series with the tube in one arm of the bridge
to " compensate " for variations in plate and grid bat-
tery voltages ; (2) the suspension of the tubes to protect
them from mechanical vibrations; (3) the use of tubes
with pure tungsten filaments to avoid changes in con-
tact potentials, and with plates enclosing the filaments
completely to lower the effects of wall charges. In a
'' null " method of using the circuit the values of the
grid resistance and an auxiliary potential introduced
in the grid-filament circuit are sufficient to determine
the measured current.

Meeting Long Distance Telephone Prohlems,^ by
H. R. Fritz and H. P. Lawther, Jr. There have been
written many papers describing various technical and
apparatus developments of value in providing long dis-
tance telephone service. Several papers have also ap-
peared covering specific transmission or operating

* Journal of the Optical Society of America and Re\-iew of Scientific In-
struments, Vol. 18, May, 1929, pp. 393-402.

5 A, I. E. E. Journal, July, 1929, pp. 547-550 (abridgment).

[335]

Bell Telephone Quarterly

problems, or dealing with the advance planning of the
telephone plant. Feeling that it might be of interest,
particularly to the young engineering graduates, the
writers have prepared this overall sketch of the general
problem of actually providing, year by year, the ex-
tensions and additions to a comprehensive network of
communication channels necessary to keep pace with a
growing public demand for long distance service.
Since the writers are most familiar with the area served
by the Southwestern Bell Telephone Company, the dis-
cussion is restricted to that territory.

Some Measurements on the Directional Distribution
of Static,^ by A. E. Harper. The utility of directional
data on static is shown, and two types of apparatus de-
vised for such a directional investigation are compared.
It is shown that a method which gives the direction of
individual crashes is superior to integrating methods.
The distribution of thunderstorms over the world is dis-
cussed, and comparisons are drawn between this distri-
bution and the observed directional distribution of
static. Probable geographical locations are assigned
to the sources, based upon thunderstorm data and di-
rectional observations.

Maximum Excursion of the Photoelectric Long
Wave Limit of the Alkali Metals,'' by Herbert E. Ives
and A. R. Olpin. Earlier experiments have shown that
the long wave limit of photoelectric action in the case
of thin films of the alkali metals varies with the thick-
ness of the film. A maximum value is attained greater
than that for the metal in bulk, which for the majority
of the alkali metals lies in the infra-red. Tlie wave-
length of the maximum excursion of the long wave limit
was first studied for Na, K, Rb and Cs. In each case
it was found to coincide with the first line of the prin-

6 Proceedings of the Institute of Eadio Engineers, Vol. 17, July, 1929, pp.
1214-1224.

7 Physical Eeview, Vol. 34, July 1, 1929, pp. 117-128.

[336]

Abstracts of Technical Articles

cipal series, i.e., the resonance potential. If this rela-
tion holds for lithium, its maximum long wave limit
should be greater than that of sodium. This was tested
and confirmed by experiments in which red-sensitive
lithimn films were prepared, sensitive to 0.6708 [a. It
is suggested that photoelectric emission is caused when
sufficient energy is given to the atom, to produce its
first stage of excitation. The identity of photoelectric
and thermionic work functions suggests that atomic
excitation is the initial process in thermionic emission
as weU.

Magnetic Testing Furnace for Toroidal Cores,^ by
G. A. Kelsall. When making magnetic tests at high
temperatures trouble is often experienced in maintain-
ing the insulation between turns of the magnetizing and
exploring windings and between the windings and the
test sample.

This paper describes a magnetic testing furnace for
toroidal specimens which eliminate these difficulties.
By means of this furnace the test sample may be passed
through a definite temperature cycle and the variation
in magnetization for a constant magnetizing force de-
termined or the temperature may be held constant while
measurements are made for the B-H curve or for a hys-
teresis loop.

Electrical Wave Analyzers for Power and Tele-
phone Systems,^ by R. G. McCurdy and P. W. Blye.
This paper describes two types of electrical analyzers
which have been developed for the direct measurement
of harmonic components of voltage and current on
power and telephone systems. These devices are as-
sembled mechanically in a form suitable for use either
in the laboratory or in the field. Both instruments,
which differ chiefly with respect to sensitivity and in-
put circuit arrangement, employ multistage vacuum

8 Journal of the Optical Society of America and Eeview of Scientific In-
struments, Vol. 19, July, 1929, pp. 47-49.

9 A. I. E. E, Journal, Vol. 48, June, 1929, pp. 461-464 (abridgment).

[337]

Bell Telephone Quarterly

tube amplifiers and two duplicate interstage selective
circuits.

The power circuit analyzer is designed to measure
harmonic voltages in the frequency range from 75 to
3000 cycles and over a voltage range from 0.5 millivolt
to 50 volts. The telephone circuit analyzer operates
over the same frequency range and measures harmonic
currents as low as 0.05 microampere and voltages as
small as 0.005 millivolt. Both analyzers are adapted
to measure small harmonic voltages and currents in
the presence of the fundamental component and other
harmonics relatively large in magnitude.

A number of devices are described w^hich have been
adopted for eliminating various sources of error. The
paper presents in detail the characteristics of both in-
strmnents with respect to selectivity, sensitivity, line-
arity, balance of input with respect to groimd, genera-
tion of harmonics, and susceptiveness to stray fields.

Solution to a Problem in Diffusion in Eynploying a
Non-0 rtliogonal Sine Series,^"" by R. L. Peek, Jr. In
this paper are described some recent developments in
to diffusion through a membrane between a chamber
in which a constant pressure of the diffusing material
is maintained and a second closed chamber, initially
evacuated, into which the material diffuses. Assuming
Fick's law to apply, a solution is obtained in the form
of an infinite series of a type similar to those applying
to other problems in diffusion. The sine series to
which the solution reduces at zero time is non-orthog-
onal, but it is show^n that by a modification of Fourier's
method the coefficients of the terms may be directly de-
termined. There is included a proof of the converg-
ence of the series considered.

Recent Developments in Telephone Construction
Practices,^"^ by B. S. Wagner and A. C. Burroway. In
this paper are described some recent developments in

10 Annals of Math., 2d Series, Vol. 30, April, 1929, pp. 265-269.

11 A. I. E. E. Journal, Vol. 48, May, 1929, pp. 366-369 (abridgment).

[338]

Abstracts of Technical Articles

telephone cable iiistallation and maintenance practices.
The paper is divided into three sections: (1) Gas pres-
sure testing for detecting and locating sheath defects
before they result in failure. (2) Methods for reduc-
ing bo\Ying and other movements of cable which in time
cause fracture of the sheath. (3) Catenary construc-
tion for long spans, such as at river crossings.

A Method of Sampling Inspection,^^ by H. F. Dodge
and H. G. Romig. This paper outlines some of the
general considerations which must be taken into ac-
count in setting up any practical sampling inspection
plan. An economical method of inspection is devel-
ojDed in detail for the case where the purpose of the in-
spection is to determine the acceptability of discrete
lots of a product submitted by a producer. By employ-
ing probability theory, the method places a definite bar-
rier in the path of material of defective quality and
gives this protection to the consumer with a minimum
of inspection expense.

Statistical Theories of Matter, Radiation and Elec-
tricity,^^ by Karl K. Darrow. In this paper is dis-
cussed the atomic or kinetic theory of gases which has
ranked for over half a century as one of the triumphs
of theoretical physics. Owing to brilliant new work in
the fundamentals of statistical theory, a competent
kinetic theory of radiation and of electricity in metals
now exists beside its predecessor, and perhaps even in-
cludes it.

Articulation Testing Methods,^* by H. Fletcher and
J. C. Steinberg. This paper is chiefly concerned with
the technique of making articulation tests. The con-
struction of a syllabic testing list, the selection of a
testing crew, the methods of comparing articulation
data for various crews, and the significance of the test
as a measure of the speech capabilities of a system are

12 Bell System Technical Journal, October, 1929.

13 Physical Review Supplement, Vol. 1, July, 1929, pp. 90-155.

14 Beil System Technical Journal, October, 1929.

[339]

Bell Telephone Quarterly

discussed. Various tj^es of lists for different uses are
also discussed.

Tlie Frequency Distribution of the Unknoivn Mean
of a Sampled Universe,"-^ by E. C. Molina and E. I.
Wilkinson. In this paper the mathematical analysis
is based on the Laplacian Bayes Theorem which im-
plicitly comprehends the results of a sample together
with the a priori knowledge available concerning the
parameters of the universe.

The discussion is limited to a universe assumed to
be normal but whose mean and precision constant are
unknown. Several simplifying, yet quite reasonable,
assumptions regarding the forms and independence of
the a priori frequency distribution of the true mean
and standard deviation are incorporated in the analysis
so that nmnerical answers may more easily be deduced.

Conclusions, prox^erly drawn, are usually quite def-
initely dependent upon the a priori assumptions made,
and especially so in the case of small samples. A con-
siderable space is, therefore, devoted to the solution
of a problem in which the sample is only five, taking
up a wide variety of these a priori assumptions. They
give, in consequence, a wide range of numerical results,
appearing in the form of probable errors in the mean
of the sample. Each set of assumptions is briefly dis-
cussed indicating how the sampling technician may be
able to make a selection consistent with his a priori
knowledge of a particular problem.

Telephone Transmission Net works. ^^ Types and
Problems of Design, by T. E. Shea and C. E. Lane. In
this paper a brief resume of the nature of telephonic
signals is given, showing how the qualities of wave com-
position which distinguish signals from other electrical
waves set the requirements on networks and provide
a basis for their design.

15 Bell System Technical Journal, October, 1929.

16 Presented at the Eegional Meeting of the South West District No. 7,
of the A. I. E. E., Dallas, Texas, May 7-9, 1929. Abridgment in A. I. E. E.
Jour., Aug., 1929.

[340 1

Abstracts of Technical Articles

The principal functions of wave filters, equalizers,
telephone transformers, line balancing networks, and
artificial lines are outlined. In order that these net-
works may be used in conjunction with other apparatus
in the telephone system they must provide efficient
transmission, low distortion, good impedance balance,
stoppage of longitudinal currents, stable characteristics
with current variations, low external coupling, and low
reflection coefficient. In addition to these require-
ments the network must not cross-talk into associated
circuits and must have desirable impedance character-
istics in the attenuation range of frequencies as well as
throughout the transmission range.

An illustration of the use of transmission networks
in a typical three-channel carrier telephone system is
given describing the functions of the line filter sets, the
directional filter sets, band filters, and equalizers.

Some of the engineering limitations on the design
and construction of networks are discussed.

Speech Potver and its Measurement,^'' by L. J. Siv-
ian. This paper is chiefly concerned with the impor-
tant speech power quantities— frequency spectra, dis-
tributions of instantaneous, average, syllabic and peak
amplitudes, etc.— as they obtain in actual speech for a
large range of voices, talking levels, and subject mat-
ters. The analysis is not nearly so complete nor so
fime-grained as that which, in principle, can be derived
from oscillographic records of individual speech
sounds. Its advantage is in the speed with which data
can be secured, under widely varying conditions and
on a scale which warrants statistical conclusions.
Some of the methods in use for measurements of this
type are described. A " level analyzer " has been de-
veloped, primarily for the measurement of average and
peak pressure amplitudes in speech and music, both as
to magnitude and as to position in the frequency spec-
ie Bell System Technical Journal, October, 1929. Presented before Acous-
tical Society of America, May 11, 1929.

[341]

Bell Telephone Quarterly

trum. Illustrative results are given for samples of
speech, music and noise.

Physical Properties and Methods of Test for Some
Sheet Non-Ferrous Metals,''^ by J. R. Townsend and
W. A. Straw. This paper covers an investigation
which was undertaken to secure a simple and reliable
method of test for sheet non-ferrous metals. An ac-
count of the early development work leading to the
adoption of the Rockwell hardness tester for a prelim-
inary inspection of sheet metals and the tensile test as
the basic test to be referred to in case the Rockwell test
results were near to or outside the established Rockwell
limits for a given lot of material was published in 1927.
The continuation of this work including establishment
of test limits for four grades of brass and for two
grades each of nickel silver and phosphor bronze will
be published this year. This present paper describes
the development work reported by these two papers.

Considerable attention has been given to the Rock-
well tester, which, as a result of this work, has been
found satisfactory for use as a specification instrument
for brasses 0.020 in. and thicker, when used under
standardized methods of test and calibrated with stand-
ard test blocks. Other tests such as the bend test, duc-
tility test and other hardness tests have been studied
but further development work is necessary.

The Rockwell hardness and tensile strength limits
are given for four alloys of brass, and two alloys each
of nickel silver and phosphor bronze. The physical
properties of the rolling series upon which these limits
were based are presented as well as experience data ob-
tained on shipments of conmiercial material. The lim-
its for brass alloys A, B and E are considered final, but
the limits for the other metals are tentative imtil more
complete experience is available.

Grain size limits are given for annealed brass and
nickel silver sheet. For inspection purposes the grain

IS Bell System Technical Journal, October, 1929.

[342]

Abstracts of Technical Articles

size is estimated by comparison with the standard
photomicrographs reproduced in the 1929 report of
Committee E4 of the A. S. T. M. on Metallography.

Refinements in the calibration of the Rockwell
tester are given, as well as the development of testing
technique. An experimental model of a motor-driven
bend test machine is described.

Asymptotic Dipole Radiation Formula/^ by W.
Howard Wise. In this paper the asjrmptotic dipole
radiation formulas given by Weyl, the Reciprocal
Theorem and Strutt are obtained by refining Sommer-
f eld's analysis.

19 Bell System Technical Journal, October, 1929.

343 J

Notes on Recent Occurrences

TELEVISION IN COLORS

A SCORE or more of New York newspaper men,
gathered in the Bell Laboratories on June 27, wit-
nessed the first public demonstration of color television
—the transmission and reproduction by electricity of
moving objects in their natural colors. Through the
television apparatus they saw a fluttering red, white
and blue American flag; a child's playball; bright with
orange, green and red; a bouquet of roses; a slice of
watermelon; and— as a sort of a finale— a young
woman, clad in a costume that suggested a Hallowe'en
party, who smiled while she toyed with a string of red
coral beads.

Television in color is an American achievement. It
is the accomplishment of the same group of Bell Sys-
tem engineers, headed by H. E. Ives, who gave the first
public demonstration of successful single-color tele-
vision, about two years ago. A second step in the Bell
System's development of television was accomplished
last summer, when scenes illuminated by ordinary sun-
light were successfully transmitted.

Much of the apparatus employed in color television
is essentially the same as that used in the one-color
demonstration of April, 1927. The only new features
of the apparatus are the type and arrangements of the
photo-electric cells at the transmitting end, and the type
and arrangements of the neon and argon tubes at the
receiving end.

Cells That Can "See" Colors

The photo-electric cells used in monochromatic tele-
vision were sensitive only to the blue-green end of the
spectrum and were, so to speak, "color blind" as to red

[344]

Notes on Recent Occurrences

values. A new type of cell, using sodium in place of
potassium, has been developed, and has proved respon-
sive to all of the colors of the visible spectrum, includ-
ing the deep reds. In combination with the scanning
apparatus, these cells perform the function of ''looking
at" the scene or object to be transmitted and for this
reason are sometimes referred to as "electric eyes."

So far as the eye is concerned, any color may be
represented by the proper combination of just three
fundamental colors— red, green and blue. The first
problem in the development of color television was,
therefore, that of arranging sets of photo-electric cells
in such a manner that one set would be responsive to the
red values, another to the greens, and a third for the
blues. This has been accomplished by the use of color
filters made up of sheets of colored gelatin. Three sets
of cells, each with its appropriate filters, are employed
and three series of television signals are generated, in-
stead of one as in the case of monochromatic television.
Three channels are used for the transmission of these
signals, one for each fundamental color.

Neon and Argon Lamps

At the receiving end, three lamps are used, one for
each fundamental color. The red-glowing lamp is filled
with neon gas and is essentially similar to those previ-
ously used in one-color television. The sources of
green and blue lights are argon tubes. In order to
combine the light of the three lamps, so that they may
be viewed through the scanning disc as if coming from
the same point, two semi-transparent mirrors are in-
terposed between them and the disc.

Behind the scanning disc, in addition to the lamps
and mirrors, is a lens system which focuses the light
into a small aperture at the front of the apparatus.
The observer looking into the aperture receives, through
each hole of the disc as it passes the aperture, light from

[345]

Bell Telephone Quarterly

the three lamijs— each controlled by its appropriate sig-
nal from the sending end. When the intensities of the
three images are properly adjusted, he therefore sees
an image in its true colors, with the general appearance
of a small colored motion picture.

TRANSATLANTIC SERVICE EXTENSIONS

TRANSATLANTIC telephone service was ex-
tended to Belfast in Northern Ireland, to Dublin
in the Irish Free State and to the Isle of Man on August
26th. On August 28th it was extended to Milan, Italy,
and a few weeks later it was further extended to Turin
and to Genoa, the birthplace of Columbus. On October
first it was extended from Prague to iaclude all of
Czecho-Slovakia.

The rate for a telephone conversation between New
York City and these points in Ireland is $46.50 for the
first three minutes and $15.50 for each additional min-
ute. The rate between New York and any of the three
Italian cities is $51 for the first three minutes and $17
for each additional minute.

Calls from America to Ireland are routed through
New York City to one of the Bell System's radio trans-
mitting stations, across the Atlantic to a receiving sta-
tion in Great Britain and thence by wire to London.
From London telephone wires carry the calls to sub-
marine cables running imder the Irish Sea.

Connection with the Irish Free State is established
through a cable between Nevin in Carnarvonshire,
Wales, and Howth in County Dublin. A cable between
Port Mora on the Stranraer Peninsula in Wigtown-
shire, Scotland and Donaghadee in Coimty Down con-
nects Northern Ireland with the mainland. The Isle
of Man is linked by a new cable from Blackpool in
Lancashire to Douglas on the island. An extension of
the latter cable will ultimately provide new direct cir-
cuits between London and Belfast. There are about
47,000 telephones in Ireland.

[346]

Notes on Recent Occurrences

Calls from America to Italy will be transmitted to
London over the same route as other transatlantic calls.
From London telephone wires will carry the calls to
submarine cables under the English Channel. From
the Channel telephone wires will again carry the calls
across France and Switzerland. In all the messages
will travel over a circuit of approximately 4,400 miles.

Milan, Turin and Genoa have a total of more than
100,000 telephones and a combined population of nearly
two million. These extensions put the American tele-
phone user in voice communication with twenty-one
foreign countries.

TRANSATLANTIC SERVICE PLACED ON
24-HOUR BASIS

TO meet the requirements of a constantly increas-
ing traffic, transatlantic telephone service was put
on a twenty-four hour basis beginning September 10th.
The round-the-clock service extends to all points in
Europe connected to America by the overseas circuits.
For the past year the daily service period has been from
6 : 30 A.M. to 10 P.M., New York time.

When the service was first inaugurated between
New York and London on January 7, 1927, the period
of service was from 8:30 o'clock in the morning to 1
P.M., Eastern Standard Time. Later, on April 10 of
the same year, this period was extended from 7 :30 a.m.
to 1 P.M., Eastern Standard Time. Another hour in
the morning was added on April 24, and shortly there-
after the time w^as extended in the afternoon to 5 p.m.
and subsequently to 6 p.m.

On March 4, 1928, coincident with the reduction of
rates, the period of operation was extended to 8 p.m..
Eastern Standard Time, and on June 4, 1928, it was
made available up to 9 p.m., Eastern Standard Time.
This was further extended to 10 p.m. on September 30,
1928.

[ 347 1

Bell Telephone Quarterly

Effective September 10, 1929, the service became
continuous. The differences in international time,
which between California and middle Europe amount
to nine hours, hitherto had interfered with the full use
of the service, but this has now been corrected by the
change in the hours.

BELL SYSTEM OFFICIALS TELEPHONE TO

AUSTRALIA

America talked with Australia through regular tel-
ephone instnunents for the first time on September
25th when officials of the American Telei)hone and Tel-
egraph Company exchanged greetings with the Aus-
tralian telephone officials in Sidney. The occasion was
an informal demonstration of the practicability of con-
necting the transatlantic telephone channel operated
by the American Telephone and Telegraph Company
and British Post Office with the new short wave radio
telephone channel operated by the British General Post
Office between Great Britain and the Australian Con-
tinent. The directive short wave transatlantic radio
channel that is now in regular use for European service
Avas used in the demonstration instead of the long wave
channel so that the voices of the speakers were carried
a total distance of 15,000 miles by the short wave sys-
tem of transmission interconnecting the wire systems
of the United States and Australia.

From the office of President Walter S. Gifford of
the American Telephone and Telegraph Company calls
passed over wire lines to the company's short wave
transmitting center at Lawrenceville, N. J. ; thence by
radio to the short wave receiving station of the British
General Post Office at Baldock near London, England ;
and thence by wire via London to the British Govern-
ment's transmitting station at Rugby, England, and
again by radio to the receiving sation of Amalgamated
Wireless of Australia, near Sidney. The return path

[348]

Notes on Recent Occurrences

was again to Baldock; thence via Rugby to the Bell
System's short wave receiving station at Netcong, N. J.
An interesting aspect of the conversations was that,
taking place at four o'clock, September 25, New York
time, the clocks in Sidney read six A.M., September 26.
The conversations were between President Gifford
of the American Telephone and Telegraph Company,
Dr. Frank Jewett, President of the Bell Telephone
Laboratories, Vice President Arthur W. Page, Amer-
ican Telephone and Telegraph Company, and T. G.
Miller, General Manager Long Lines, American Tele-
phone and Telegraph Company, on the American side ;
and Mr. A. S. MacDonald of Amalgamated Wireless of
Australia.

349

BELL TELEPHONE QUARTERLY

VOLUME Vin, 1929
INDEX

PAGE

Absorption of Oxygen by Eubber, The, by G. T. Kohman, Note on .... 232

Academic Honors for A. T. & T, Co. officials 252

Walter S. Gifford, President Colgate University

Walter S. Gifford, President Oberlin College

F. B. Jewett, Vice President Univ. of Chicago

H. B. Thayer, former President Dartmouth College

Accounting Practice, The Straight-Line Depreciation, of Telephone Com-
panies in the United States, by A. B. Crunden and D. E. Belcher (17
illus.) 259

Acoustic Considerations Involved in Steady State Loud Speaker Meas-
urements, by L. G. Bostwick, Note on 77

Acoustics of an Auditorium, Effect of the, on the Interpretation of Speech,
by E. C. Wente, Note on 85

Adsorption of Gases by Graphitic Carbon. II — X-Eay Investigation of
the Adsorbents, by H. H. Lowry and E. M. Bozorth, Note on 83

Airplane (Flying), Two-Way Talk between Telephone and. Demonstrated
by Bell System 246

Alloys, A Metallographic Study of Tungsten Carbide, by J. L. Gregg
and C. W. Kiittner, Note on 232

Alloys, Effect of Arsenic on Dispersion-hardenable Lead-antimony, by
K. S. Seljesater, Note on 237

Alloys, Heat Treatment and Mechanical Properties of Some Copper-zinc
and Copper-tin, Containing Nickel and Silicon, by W. C. Ellis and Earle
E. Schumacher, Note on 231

Alloys, Magnetic, of Iron, Nickel, and Cobalt, by G. W. Elmen, Note on 238

Allsopp, C. B., General Commercial Manager (Southern Area), New Eng-
land Telephone and Telegraph Co 88

Aluminum Electrolytic Condenser, The, by H. O. Siegmund, Note on ... . 75

American Institute of Electrical Engineers, H. P. Charlesworth made
Chairman of N. Y. Section 245

Annual Meeting, American Telephone and Telegraph Co., March 26, 1929 170

Application of Electron Diffraction to the Study of Gas Adsorption, An,
by L. H. Germer, Note on 238

Application to the Binomial Summation of a Laplacian Method for the
Evaluation of Definite Integrals, by E. C. Molina, Note on 76

Articulation Testing Methods, by H. Fletcher and J. C. Steinberg, Note on 339

Asymptotic Dipole Eadiation Formula, by W. Howard Wise, Note on . . 343

Auditorium, The Effect of the Acoustics of an, on the Interpretation of
Speech, by E. C. Wente, Note on 85

Australia, Bell System Officials Telephone to 348

Bailey, Austin, S. W. Dean and W. T. Wintringham : The Eeceiving Sys-
tem for Long Wave Transatlantic Eadio Telephony, Note on 153

Basch, Edward J. and Earle E. Schumacher: Lead-Tin-Cadmium as a
Substitute for Lead-Tin Wiping Solder, Note on 162

Beals, W. B. and E. B. Tuttle: The Communication System of the Cono-
wingo Development, Note on 80

Belcher, D. E. and A. B. Crunden: The Straight-Line Depreciation Ac-
counting Practice of Telephone Companies in the United States (17

illus.) 259

1

BELL TELEPHONE QUARTERLY INDEX, VOLUME VIII

PAGE

Bell Lines used for Inauguration Broadcasting and Telephotographs . . . 167

Bell System Buildings — An Interpretation, by R. S. Coe (15 illus.) 201

Bell System OfiQcials Telephone to Australia 848

Benham, F. A., Engineer (Northern Area), New England Telephone and

and Telegraph Co 90

Blair-Smith, H: 1929 Convertible Bond Offer of the American Telephone

and Telegraph Company (8 illus.) 316

Blattner, D. G.: Listening Device Aids in Combating the Fruit Fly Pest

in Florida 328

Blye, P. W. and R. G. MeCurdy: Electrical Wave Analyzers for Power

and Telephone Systems, Note on 337

Bond, 1929 Convertible, Offer of the American Telephone and Telegraph

Company, by H. Blair-Smith (8 illus.) 316

Bonds, A. T. & T. Co., Offered to Stockholders 244

Bostwick, L. G.: Acoustic Considerations Involved in Steady State Loud

Speaker Measurements, Note on 77

Bowen, B. J., Engineer (Southern Area), New England Telephone and

Telegraph Co 88

Bown, Ealph: Short Waves and Long Waves in Transatlantic Radio

Telephony 253

Bozorth, R. M. and H. H. Lowry: Adsorption of Gases by Graphitic Car-
bon. II — X-Ray Investigation of the Adsorbents, Note on 83

Braun Tube Hysteresigraph, A, by J. B. Johnson, Note on 155

Brittleness Test for Paper, Study of Weller, by E. L. Peek, Jr., and J.

M. Finch, Note on 236

Buildings, Bell System — An Interpretation, by R. S. Coe (15 illus.) 201

Burroway, A. C. and B. S. Wagner: Recent Developments in Telephone

Construction Practices, Note on 338

Business Activity, An Index of General, by P. J. Weber (2 illus.) 124

Business Offices, Counterless, by R. S. Rankin (3 illus.) 30

Cable, Buried Toll, Installation of New Types of (21 iUus.) 296

Cable, Long Toll, Construction and Maintenance, by L. N. Stoskopf (1

illus.) 115

Cable, 1800-Pair, becomes a Bell System Standard, by F. L. Rhodes (1

illus.) 25

Cable, Toll, Construction and its Problems, Recent, by H. S. Percival,

Note on 83

Camera for Making Parallax Panoramagrams, A, by Herbert E. Ives,

Note on 160

Carrier Telephony, Problems in Power Line, and Recent Developments

to Meet Them, by J. D. Sarros and W. V. Wolfe, Note on 84

Carson, John R. : Ground Return Impedance : Underground Wire and

Earth Returns, Note on 76

Carson, John R. : Reciprocal Theorems in Radio Communication, Note on 334

Charlesworth, H. P., made Chairman of N. Y. Section, A.I.E.E 245

Charlesworth, H. P., Vice President, Bell Telephone Laboratories, Inc. . . 173
Charts and Illustrations

Drawing of simple cord circuit made in 1889 18

Drawing of simple cord circuit — today 19

1800-Pair cable (Illus.) 26a

View of counterless office (Illus.) 30a

Waiting space in a counterless office (Illus.) 30a

Open type of counter (Illus.) 30b

Layout of Key Town Telephone Sales Areas (Chart) 54

Sequence Toll Call List (Illus.) 56

BELL TELEPHONE QUARTERLY INDEX, VOLUME VIII

PAGE

Bell System Identification Card (lUus.) 57

Arrangement of the blocks and sections and numbering scheme
Chart 108

List of Stations (Chart) hq

First Reference List (Chart) m

Portion of Block Chart 112

Portion of Section Chart II3

Portion of Rate Table (Cliart) II4

Existing Routes of Long Toll Cables (Chart) 122

General Business Compared with Normal (Chart) 12.5

American Telephone and Telegraph Co. General Business Curve
(Chart) 128

Tape Telephone Typewriter (lUus.) 182a

Page Telephone Typewriter (Illus.) 182b

Automatic Sending Machine (Illus.) 182e

Telephone Typewriter Keyboard and Corresponding Code Combina-
tions (Chart) 183

Total Telephone Typewriter Machines delivered to the Bell System as

of December 31 (1929 estimated) (Chart) 184

Total Telephone Typewriter Stations in the Bell System as of De-
cember 31 (1929 estimated) (Chart) 185

Long Lines Telephone Typewriter Service, — Circuit ]\Iileage as of

December 31 (Chart) 186

Telephone Typewriter Stations— A. T. & T. Co. Contracts— 2266 Sta-
tions, March 31, 1929 (Chart) 187

Typical Broker 's Orders (Chart) 188

Typical Press Association Telegraph Office (Illus.) 188a

Tape Telephone Typewriters in a Broker's Office (Illus.) 188b

Page Telephone Typewriters and Switchboard in Police Headquarters
New York City (Illus.) 188c

Telephone Typewriter Network for Connecticut Police (Chart) 189

Order for Merchandise Handled by Page Telephone Typewriter
(Chart) 191

Tape Telephone Typewriter with 10-Line Switching Cabinet (Illus.) 192a
Switchboard for Telephone Typewriter Exchange Service (lUus.) ..192b
Circuit Layout for Telephone Typewriter Exchange Service (Chart) 193
Typical Message Handled by Telephone Typewriter Exchange Service
(Chart) 194

Administration Building of the New York Telephone Co., New York,

N. Y. (Illus.) 202a

Administration Building of the New Jersey Bell Telephone Co., New-
ark, N. J. (Illus.) 202b

Administration Building of the Southwestern Bell Telephone Co., St.

Louis, Mo. (Illus.) 206a

Administration Building of the Pacific Telephone and Telegraph

Co., San Francisco, Calif. (Illus.) 206b

Administration Building of the Ohio Bell Telephone Co., Cleveland,

Ohio (Illus.) 210a

Lawndale Central Office, Columbus, Ohio (Illus.) 210b

Telephone Building, Springfield, Ohio (Illus.) 210b

Mountain States Telephone Co. Headquarters, Denver, Col, (Illus.) 214a

Telephone Building, Burlingame, Calif. (Illus.) 214a

Unattended Telephone Building, Arcadia, Calif. (Illus.) 214a

Telephone Building, Huntington, N. Y. (Illus.) 214a

3

BELL TELEPHONE QUARTERLY INDEX, VOLUME VIII

PAGE

Telephone Buildings in Residential Areas: 1. Silver Spring, Md. 2.
Scituate, Mass. 3. Scarsdale, N. Y. 4. Ventura, Calif. (lUus.) 214b

Distribution of the World's Telephones (Chart) 218

Telephones Per 100 Population (Chart) 219

Ownership of the World's Telephones (Chart) 222

Telephones Per 100 Population — Communities Less Than 50,000 Pop-
ulation (Chart) 224

Telephone Development in United States and Europe (Chart) 225

Telephones Per 100 Population of Large Cities (Chart) 228

Telephone Conversations Per Capita (Chart) 229

Short Wave Transmitting Center, Lawrenceville, N. J. (Illus.) Facing 253

Broadway and John Street, New York City, 1890 (Illus.) 259a

West Street Pole Line, New York City, Erected in 1887, 90 Foot

Poles, 25 Cross- Arms, 250 Wires (Illus.) 260a

Eesult of Sleet Storm (Illus.) 261a

Fluctuation of Eetirements for a Large Telephone Company in the

United States (Chart) 262

The "Group" Basis (Chart) 269

Graduated Life Table and Related Mortality Curve (Chart) 271

Principal Mathematical Formulas (Chart) 273

Graduated Life Table and Related Mortality Curve (Chart) 274

Check of Graduation Process (Chart) 276

Example to Illustrate Principle of Turnover Method (Chart) 278

Average Realized Life of No. 1 Central Office Equipment at Various
Ages of Initial Installation (Chart) 280

Some Causes of Ordinary Depreciation of Telephone Plant and Il-
lustrations of their Effects (Chart) 281

Illustration of Method of Determining Annual Depreciation Expense

(Chart) 285

Depreciation Rates for a Large Telephone Company in the United

States (Chart) 287

Reserve Ratio for Various Rates of Plant Growth (Chart) 289

Effect of Plant Grovsrth on Annual Realized Depreciation (Chart) . . 292
Depreciation Reserve as Related to Total Depreciable Property

(Chart) 294

Aeroplane Photograph of Proposed Route (Illus.) 299a

Railroad Car Unloading Tackle (Illus.) 299b

Carload of Tape Armored Cable Ready to Leave Kearny Plant of

Western Electric Co 299b

Transferring Cable Reels from Railroad Car to Truck (Illus.) 299b

Four- Wheel Drive Cable Delivery Truck (Illus.) 299b

Trenching Soil Which is Full of Flint Rock (Illus.) 299b

Trenching Machine (Illus.) 299b

Excavating with Compressed Air (Illus.) 299c

Mechanical Tamper (Illus.) 299e

Scraper Type Back Filler (Illus.) 299c

Drag Line Back Filler (Illus.) 299c

Tractor Plow Outfit (Illus.) 299c

Lowering Wooden Manhole into Excavation (Illus.) 299c

Lowering Loading CoU Case into Manhole (Illus.) 299c

Double Trailer Outfit (Illus.) 299d

Trench Rollers (Illus.) 299d

Splice Case for Tape Armored Cable (Illus.) 299d

4

BELL TELEPHONE QUARTERLT INDEX, VOLUME VIII

PAOE

Laying Cable from Caterpillar Trailer (Illus.) 299d

Arrangement of Cable in Loading Manhole (Illus.) 299d

Splice Covering for Cable in Fiber Conduit (Illus.) 299d

Concrete Post Marking the Location of Buried Cable (Illus.) 299d

International Telephone Connections now existing in Europe (Chart) 306

Busy Hour Delay on London-Paris Circuits (Chart) 307

Number of Calls per Day between England and the Countries Indi-
cated Below (Chart) 310

Telephone Traffic Between England and Hungary (Chart) 313

Statistics on the 1929 Convertible Bond Issue (Table) 319

1929 Bond Issue Transactions Handled Locally by Associated Com-
panies for their Patrons (Table) 321

Permanent and Temporary Employees — Treasury Department

(Chart) ; 323

A View of the Communications Bureau with the Mail Section and

Eights Bureau in the Background (Illus.) 323a

A Portion of the Subscription Eeviewing and Kecording Sections

with the Bond Issue Cash Bureau in the Foreground (Illus.) . . 323a
A Unit of the Bond Delivery Section Metering Eegistered MaU En-
velopes Preparatory to Mailing (Illus.) 323b

A Section of the Bond Delivery Organization Showing Employees
Engaged in Counting Bonds, Eecording the Allotment to Indi-
vidual Subscribers and Enclosing the Bonds in Envelopes (Illus.) 323b
A View of the Mailing Unit of the Bond Delivery Organization
Showing Eegistered Mail Envelopes being prepared and checked

prior to Delivery to the Post Office (Illus.) 323b

Amount of Subscription Correspondence and Telephone Calls Eeceived

(Chart) 324

Number of Subscriptions Eeceived Weekly (Chart) 325

Coe, E. S.: Bell System Buildings— An Interpretation (15 illus.) 201

Communication, by Walter S. Giff ord ^

Communication System of the Conowingo Development, The, by W. B.

Beals and E, B. Tuttle, Note on 80

Comstock Prize to C. J. Davisson "^^

Conferences

Presidents' Conference, Yama Farms, N. Y., October 1928 59

Plant Operation Conference, Pinehurst, N. C, October 1928 59

Transmission Conference, New York City, November 1928 61

General Statistical Conference, New York City, December 1928 ... 63

General Sales Conference, New York City, January 1929 164

Editors' (Bell System) Conference, New York City, February 1929 . . 166

General Publicity Conference, Pinehurst, N. C, April 1929 246

Operating Conference, White Sulphur Springs, W. Va., May 1929 ... 248

Engineering Conference, Shawnee-on-Delaware, Pa., June 1929 249

Contemporary Advances in Physics, XVII. The Scattering of Light with

Change of Frequency, by Karl K. Darrow, Note on 75

Contemporary Advances in Physics, XVIII. The Diffraction of Waves

by Crystals, by Karl K. Darrow, Note on 154

Corcoran, J. H., General Manager (Northern Calif, and Nevada Area),

Pacific Telephone and Telegraph Co 93

Correlation of Directional Observations of Atmospherics with Weather

Phenomena, by S. W. Dean, Note on 334

Counterless Business Offices, by E. S. Eankiu (3 illus.) 30

Cowan, F. A.: Telephone Circuits for Program Transmission, Note on .. 334

5

BELL TELEPHONE QUARTEELY INDEX, VOLUME VIII

PAGE

Crunden, A. B. and D. E. Belcher: The Straight-Line Depreciation Ac-
counting Practice of Telephone Companies in the United States (17
illus.) 259

Cutover, The Dial Office, by A. W. VanHagan 95

Darling, H. E., General Manager (Southern Area), New England Tele-
phone and Telegraph Co 86

Darrow, Karl K. : Contemporary Advances in Physics, XVII. The
Scattering of Light with Change of Frequency, Note on 75

Darrow, Karl K.: Contemporary Advances in Physics, XVIII. The
Diffraction of Waves by Crystals, Note on 154

Darrow, Karl K. : Dissociation of Molecules as Disclosed by Band-
Spectra, Note on 157

Darrow, Karl K. : Scattering of Quanta with Diminution of Frequency,
Note on 157

Darrow, Karl K.: Statistical Theories of Matter, Eadiation and Elec-
tricity, Note on 339

Davis, John W., elected Director of American Telephone and Telegraph
Co 170

Davisson, C. J. Awarded Comstock Prize 71

Davisson, C. J. : Electrons and Quanta, Note on 154

Davisson, C. J. and L. H. Germer: A Test for Polarization of Electron
Waves by Eeflection, Note on 239

Davisson, C. J. and L. H. Germer: Eeflection and Eefraction of Electrons
by a Crystal of Nickel, Note on 80

Day, E. O., E. S. Dean and J. L. Gregg: Eelation of Nitrogen to Blue
Heat Phenomena in Iron and Dispersion-Hardening in the System
Iron-Nitrogen, Note on 231

Dean, E. S., E. O. Day and J. L. Gregg: Eelation of Nitrogen to Blue
Heat Phenomena in Iron and Dispersion-Hardening in the System
Iron-Nitrogen, Note on 231

Dean, S. W. : Correlation of Directional Observations of Atmospherics
with Weather Phenomena, Note on 334

Dean, S. W., Austin Bailey and W. T. Wintringham: The Eeceiving

System for Long Wave Transatlantic Eadio Telephony, Note on 153

Decibel — The Name for the Transmission Unit, by W. H. Martin, Note on 74
Depreciation Accounting Practice, The Straight-Line, of Telephone Com-
panies in the United States, by A. B. Crunden and D. E. Belcher

(17 illus.) 259

Dial Office Cutover, The, by A. E. VanHagan 95

Diffusion of Water through Eubber, by Earle E. Schumacher and Law-
rence Ferguson, Note on 236

Direct-Current Amplifier for Measuring Small Currents, A, by J. M.

EgUn, Note on 335

Directors, New, of the American Telephone and Telegraph Co 170

Dissociation of Molecules as Disclosed by Band-Spectra, by Karl K.

Darrow, Note on 157

Dix, I. F., Assistant to General Manager (Oregon-Washington-Idaho

Area), Pacific Telephone and Telegraph Co 173

Dodge, H. F. : Using Inspection Data to Control Quality, Note on 158

Dodge, H. F. and H. G. Eomig: A Method of Sampling Inspection,
Note on 339

Economic Eeview and Outlook, An, by F. E. Eichter 33

Edison Medal Awarded to Dr. Frank B. Jewett 72

Editors' (Bell System) Conference, New York City, February 25-28,

1929 166

6

BELL TELEPHONE QVARTERLY INDEX, VOLUME VIII

PAGE

Effect of Arsenic on Dispersion-hardenable Lead-antimony Alloys, by

K. S. Seljesater, Note on 237

Effect of Gases on the Resistance of Granular Carbon Contacts, The,

by P. S. Olmstead, Note on 161

Effect of Signal Distortion on Morse Telegraph Transmission Quality,

by J. Herman, Note on 155

Effect of the Acoustics of an Auditorium on the Interpretation of Speech,

The, by E. C. Wente, Note on 85

Eglin, J. M. : A. Direct-Current Amplifier for Measuring Small Currents,

Note on 335

Electric Circuits Applied to Communication, The Principles of. By H. S.

Osborne, Note on 74

Electrical Conduction in Textiles. Part I — The Dependence of the

Resistivity of Cotton, Silk, and Wool on Relative Humidity and

Moisture Content, by E. J. Murphy and A. C. Walker, Note on 160

Electrical Conduction in Textiles. Part II — Alternating Current Con-
duction, by E. J. Murphy, Note on 234

Electrical Conduction in Textiles. Part III — Anomalous Properties, by

E. J. Murphy, Note on 235

Electrical Test for Tin Coating on Copper Wire, An, by H. M. Larsen

and C. M. Underwood, Note on 233

Electrical Wave Analyzers for Power and Telephone Systems, by R. G.

McCurdy and P. W. Blye, Note on 337

Electrolytic Condenser, The Aluminum, by H. O. Siegmund, Note on . . 75

Electrons, Optical Experiments with, by L. H. Germer, Note on 81

Electrons and Quanta, by C. J. Davisson, Note on 154

Electrons, Reflection and Refraction of, by a Crystal of Nickel, by C. J.

Davisson and L. H. Germer, Note on 80

Elementary Differential Equations, by Thornton C. Fry, Note on 159

Ellis, W. C. and Earle E. Schumacher: Heat Treatment and Mechanical

Properties of Some Copper-zinc and Copper-tin Alloys Containing

Nickel and Silicon, Note on 231

Ehnen, G. W. : Magnetic Alloys of Iron, Nickel, and Cobalt, Note on . . 238

Elmen, G. W. : Magnetic Properties of Perminvar, Note on 74

Engineering Conference, Shawnee-on-Delaware, Pa., June 5-12, 1929 . . 249
Espenschied, Lloyd and William Wilson: Extension of Telephone Service

to Ships at Sea 175

European Factory Methods and Equipment in the Manufacture of Metals,

by David Levinger, Note on 160

Exchange Plants, The Planning of Telephone, by W. B. Stephenson,

Note on 84

Extension of Telephone Service to Ships at Sea, by Lloyd Espenschied
and William Wilson 175

Fatigue Studies of Non-Ferrous Sheet Metals, by John R. Townsend and

Charles H. Greenall, Note on 242

Ferguson, John G.: Shielding in High-Frequency Measurements, No*e on 242
Ferguson, Lawrence and Earle E. Schumacher: Diffusion of Water through
Rubber, Note on 236

Finch, J. M. and R. L. Peek, Jr.: Study of Weller Brittleness Test for
Paper, Note on 236

Fletcher, H. and J. C. Steinberg: Articulation Testing Methods, Note on . . 339

Fletcher, Harvey : Speech and Hearing, Hote on 158

Fly, Fruit, Pest in Florida, Listening Device Aids in Combating the,

by D. G. Blattner 328

Frederick, H. A. : Recent Advances in Wax Recording, Note on 77

Frequency, A High Precision Standard of, by W. A. Marrison, Note on 240

7

BELL TELEPHONE QUAETEBLY INDEX, VOLUME VIII

PAGE

Frequency Distribution of the Unknown Mean of a Sampled Universe,
The, by E. C. Molina and E. L. Wilkinson, Note on 340

Frequency, The Scattering of Light with Change of, Contemporary Ad-
vances in Physics, XVII, by Karl K. Darrow, Note on 75

Fritz, H. R. and H. P. Lawther, Jr.: Meeting Long Distance Telephone
Problems, Note on 335

Fruit Fly Pest in Florida, Listening Device Aids in Combating the, by
D. G. Blattner 328

Fry, Thornton C. : Elementary Differential Equations, Note on 159

Further Extensions of Transatlantic Telephone Service (Danzig, Ontario
and Quebec, Spain, Mexico-Europe, Austria, Hungary, Czechoslovakia,

Spanish Morocco in Africa, France) 64

Further Observations on the Microstructure of Martensite, by Francis
F. Lucas, Note on 233

General Publicity Conference, Pinehurst, N. C, April 10-17, 1929 246

General Sales Conference, New York City, January 28-February 2, 1929 164
General Statistical Conference, New York City, December 3-8, 1928 ... 63
Generalization of Heaviside's Expansion Theorem, A, by W. O. Pennell,
Note on 240

Germer, L. H.: An Application of Electron Diffraction to the Study of

Gas Adsorption, Note on 238

Germer, L. H. : Optical Experiments with Electrons, Note on 81

Germer, L. H. and C. J. Davisson: A Test for Polarization of Electron

Waves by Eeflection, Note on 239

Germer, L. H. and C. J. Da\asson: Eeflection and Eefraction of Electrons

by a Crystal of Nickel, Note on 80

Giflford, W. S., An Interview with President 195

Giff ord, Walter S. : Communication 1

Gifford, Walter S., elected U. S. Steel Director 73

Gifford, Walter S., received honorary degree from Colgate University . 252

Gifford, Walter S., received honorary degree from Oberlin College 252

Glenn, H. H. and E. B. Wood: Purified Textile Insulation for Telephone

Central Office Wiring, Note on I54

Gray, C. H. G. and W. H. Martin: Master Reference System for Tele-
phone Transmission, Note on 241

Gray, Frank and Herbert E. Ives: Optical Conditions for Direct Scanning
in Television, Note on 160

Greenall, Charles H. and John E. Townseud: Fatigue Studies of Non-
Ferrous Sheet Metals, Note on 242

Gregg, J. L. and C. W. Kiittner: A Metallographic Study of Tungsten
Carbide AUoys, Note on 232

Gregg, J. L., E. S. Dean and E. O. Day: Relation of Nitrogen to Blue
Heat Phenomena in Iron and Disperson-Hardening in the System
Iron-Nitrogen, Note on 231

Ground Return Impedance: Underground Wire and Earth Returns, by
John C. Carson, Note on 76

Harper, A. E.: Some Measurements on the Directional Distribution of
Static, Note on 335

Harrell, J. E., General Traffic Manager (Northern Area), New England

Telephone and Telegraph Co 89

Hearing, Speech and, by Harvey Fletcher, Note on 158

Heat Treatment and Mechanical Properties of Some Copper-zinc and
Copper-tin AUoys Containing Nickel and Silicon, by W. C. Ellis and
Earle E. Schumacher, Note on 231

8

BELL TELEPHONE QU ARTE SLY INDEX, VOLUME VIII

PAGE

Heaviside's Expansion Theorem, A Generalization of, by W. O. Pennell,

Note on 240

Herman, J. : Effect of Signal Distortion on Morse Telegraph Transmission

Quality, Note on 155

High Precision Standard of Frequency, A, by W. A. Harrison, Note on 240

Hippensteel, C. L.: Rubber Compression Testing Machine, Note on 81

Hoag, F. M., Vice President, Southwestern Bell Telephone Co 91

HoUey, W. L., General Traffic Manager, Southwestern Bell Telephone Co. 92

Impedance, Ground Return: Underground Wire and Earth Returns, by

John R. Carson, Note on 76

Inauguration Broadcasting and Telephotographs, Bell Lines used for . . 167

Index of General Business Activity, An, by P. J. Weber (2 illus.) 124

Inspection, a Method of Sampling, by H. F. Dodge and H. G. Romig,

Note on 339

Installation of New Types of Buried Toll Cable (21 illus.) 296

Insulation, Purified Textile, for Telephone Central Office Wiring, by H.

H. Glenn and E. B. Wood, Note on 154

Insulators, The Predominating Influence of Moisture and Electrolytic
Material Upon Textiles as, by R. R. Williams and E. J. Murphy,

Note on 156

Integrals, Application to the Binomial Summation of a Laplacian Method

for the Evaluation of Definite, by E. C. Molina, Note on 76

Interview with President W. S. Gifford, An 195

Ionization in the Upper Atmosphere, Note on the Determination of the,

by J. C. Schelleng, Note on 161

Ives, Herbert E. : A Camera for Making Parallax Panoramagrams, Note on 160

Ives, Herbert E. : Motion Pictures in Relief, Note on 232

Ives, Herbert E. and Frank Gray: Optical Conditions for Direct

Scanning in Television, JJote on 160

Ives, Herbert E. and A. R. Olpin: Maximum Excursion of the Photo-
electric Long Wave Limit of the Alkali Metals, Note on 336

Jewett, F. B., received honorary degree from University of Chicago 252

Jewett, Frank B., Awarded Edison Medal 72

Johnson, J. B. : A Braun Tube Hysteresigraph, Note on 155

Joint Pole Use with Power Companies, by D. E. Lowell, Note on 82

Keith, C. R. : New Languages from Old — How Secrecy is Gained by the

Inversion of Speech Sounds, Note on 82

Kelsall, G. A. : Magnetic Testing Furnace for Toroidal Cores, Note on . . 337
Key-Town Plan of Selling by Telephone, The, by Richard Whitcomb

(3 illus.) 47

King, R. W.: Long Distance Telephony in Europe (4 illus.) 305

Kohman, G. T. : The Absorption of Oxygen by Rubber, Note on 232

Kiittner, C. W. and J. L. Gregg: A Metallographie Study of Tungsten

Carbide Alloys, Note on 232

Lack, F. R. : Observations of Modes of Vibration and Temperature Co-
efficients of Quartz Crystal Plates, Note on 240

Lane, C. E. and T. E. Shea: Telephone Transmission Networks. Types
and Problems of Design, Note on 340

Laplacian Method for the Evaluation of Definite Integrals, Application
to the Binomial Summation of a, by E. C. Molina, Note on 76

Larsen H. M. and C. M. Underwood: An Electrical Test for Tin Coat-
ing on Copper Wire, Note on 233

9

BELL TELEPHONE QUABTEELT INDEX, VOLUME VIII

PAGE

Lawrenceville, N. J., New Short-Wave Telephone Transmitting Center
Opens at 251

Lawther, H. P., Jr. and H. R. Fritz: Meeting Long Distance Telephone
Problems, Note on 335

Layton, L. W., General Traffic Manager (Southern Area), New England
Telephone and Telegraph Co 87

Lead-Tin-Cadmium as a Substitute for Lead-Tin Wiping Solder, by Earle
E. Schumacher and Edward J. Basch, Note on 162

Levinger, David: European Factory Methods and Equipment in the Manu-
facture of Metals, Note on 160

Light, The Scattering of, with Change of Frequency. Contemporary
Advances in Physics, XVII, by Karl K. Darrow, Note on 75

Listening Device Aids in Combating the Fruit Fly Pest in Florida, by
D. G. Blattner 328

Long Distance and Toll Rates, New, effective February 1, 1929, represent

third Reduction in 28 Months 163

Long Distance Telephone Problems, Meeting, by H. R. Fritz and H. P.

Lawther, Jr., Note on 335

Long Distance Telephony in Europe, by R. W. King (4 illus.) 305

Long Distance Transmission Problems, Some, by H. Mouradian, Note on 234
Long Toll Cable Construction and Maintenance, by L. N. Stoskopf
(1 illus.) 115

Long Wave Transatlantic Radio Telephony, The Receiving System for,
by Austin Bailey, S. W. Dean and W. T. Wintringham, Note on 153

Long Waves, Short Waves and, in Transatlantic Radio Telephony, by
Ralph Bown 253

Lowell, D. E. : Joint Pole Use with Power Companies, Note on 82

Lowry, H. H. and R. M. Bozorth: Adsorption of Gases by Graphitic

Carbon. II — X-Ray Investigation of the Adsorbents, Note on 83

Lucas, Francis F.: Further Observations on the Microstructure of Mar-

tensite, Note on 233

MacKenzie, D.: Sound Recording with the Light Valve, Note on 78

MacKenzie, Donald : Technique of the Talking Movie, Note on 233

Magnetic Alloys of Iron, Nickel and Cobalt, by G. W. Elmen, Note on 238

Magnetic Properties of Perminvar, by G. W. Elmen, Note on 74

Magnetic Testing Furnace for Toroidal Cores, by G. A. Kelsall, Note on 837
Manson, G. K., Chief Engineer, New England Telephone and Telegraph Co. 86
Manufacture of Metals, European Factory Methods and Equipment in

the, by David Levinger, Note on 160

Marden, R. C, General Plant Manager (Southern Area), New England

Telephone and Telegraph Co 87

Marrison, W. A.: Oscillographs for Recording Transient Phenomena,
Note on 156

Marrison, W. A. : A High Precision Standard of Frequency, Note on . . . 240
Martin, W. H. : Decibel — The Name for the Transmission Unit, Note on 74
Martin, W. H. and C. H. G. Gray: Master Reference System for Tele-
phone Transmission, Note on 241

Marwick, R. H., General Plant Manager (Southern Calif. Area), Pacific
Telephone and Telegraph Co 172

Mason, W. P.: A New Method of Obtaining Transient Solutions of
Electrical Networks, Note on 77

Master Reference System for Telephone Transmission, by W. H. Martin
and C. H. G. Gray, Note on 241

Maximum Excursion of the Photoelectric Long Wave Limit of the Alkali

Metals, by Herbert E. Ives and A. R. Olpin, Note on 336

10

BELL TELEPHONE QUARTERLY INDEX, VOLUME VIII

PAGE

McCurdy, E. G. and P. W. Blye: Electrical Wave Analyzers for Power
and Telephone Systems, Note on 3d7

Measurements on the Directional Distribution of Static, Some, by A. E.
Harper, Note on ^^^

Meeting Long Distance Telephone Problems, by H. E. Fritz and H. P.
Lawther, Jr., Note on 3^5

Metallographie Study of Tungsten Carbide AUoys, A, by J. L. Gregg and
and C. W. Kiittner, Note on • • 23J

Method of Sampling Inspection, A, by H. F. Dodge and H. G. Eomig,
Note on ^^^

Miller, B. T.: General Commercial Manager (Northern Area), New Eng-
land Telephone and Telegraph Co 90

Moisture Content. Electrical Conduction in Textiles. Part I— The De-
pendence of the Eesistivity of Cotton, Silk and Wool on Eelatxve
Humidity and, by E. J. Murphy and A. C. Walker, Note on 160

Moisture, Predominating Influence of, and Electrolytic Material Upon
Textiles as Insulators, by E. E. Williams and E. J. Murphy, Note on . . 156

Molina, E. C: Application to the Binomial Summation of a Laplacian
Method for the Evaluation of Definite Integrals, Note on 76

Molina, E. C. and E. I. Wilkinson: The Frequency Distribution of the
Unknown Mean of a Sampled Universe, Note on 340

Monroe, A. P., General Traffic Manager, New Jersey Bell Telephone Co. 92

Motion Pictures in EeUef, by Herbert E. Ives, Note on 232

Mouradian, H.: Some Long Distance Transmission Problems, Note on 234

Murphy, E. J.: Electrical Conduction in Textiles. Part II — Alternating
Current Conduction, Note on 234

Murphy, E. J.: Electrical Conduction in Textiles. Part III — Anomalous
Properties, Note on 235

Murphy, E. J. and A. C. Walker: Electrical Conduction in Textiles.
Part I — The Dependence of the Eesistivity of Cotton, Silk and Wool
on Eelative Humidity and Moisture Content, Note on 160

Murphy, E. J. and E. E. Williams: The Predominating Influence of
Moisture and Electrolytic Material Upon Textiles as Insulators, Note on 156

New Languages from Old— How Secrecy is Gained by the Inversion of

Speech Sounds, by C. E. Keith, Note on 8^

New Method of Obtaining Transient Solutions of Electrical Networks, A,

by W. P. Mason, Note on '^''

New Specifications for Eaw Materials, by J. E. Townsend, Note on 162

New Toll and Long Distance Eates effective February 1, 1929 represent

third Eeduction in 28 Months 163

Note on the Determination of the Ionization in the Upper Atmosphere,

by J. C. Schelleng, Note on 161

Observations on Modes of Vibration and Temperature Coefficients of
Quartz Crystal Plates, by F. E. Lack, Note on 240

Olmstead, P. S.: The Effect of Gases on the Eesistance of Granular
Carbon Contents, Note on 161

Olpin, A. E. and Herbert E. Ives: Maximum Excursion of the Photo-
electric Long Wave Limit of the Alkali Metals, Note on 336

1800-Pair Cable becomes a Bell System Standard, by F, L. Ehodes,
1 illus.) 25

1928 — An Economic Eeview and Outlook, by F. E. Eichter 33

1929 Convertible Bond Offer of the American Telephone and Telegraph
Company, by H. Blair-Smith (8 illus.) 316

Operating Conferences, White Sulphur Springs, W. Va., May 1-8, 1929 . . 248

11

BELL TELEPHONE QUARTERLY INDEX, VOLUME VIII

PAGE

Optical Conditions for Direct Scanning in Television, by Frank Gray

and Herbert E. Ives, Note on 160

Optical Experiments with Electrons, by L. H. Germer, Note on 81

Oscillographs for Eecording Transient Phenomena, by W. A. Harrison,

Note on 156

Osborne, H. S.: Standardization in the Bell System (2 illus.) 9

Osborne, H. S. : Standardization in the Bell System — II 132

Osborne, H. S. : The Principles of Electric Circuits Applied to Com-
munication, Note on 74

Panoramagrams, A Camera for Making Parallax, by Herbert E. Ives,
Note on 160

Parker, R. D. : Telephone Typewriters and Auxiliary Arrangements (18
illus.) 181

Peck, R. L., Jr. and J. M. Finch: Study of Waller Brittleness Test for
Paper, Note on 236

Peck, R. L. Jr. : Solution of a Problem in Diffusion in Employing a
Non-Orthogonal Sine Series, Note on 338

Pennell, W. O. : A Generalization of Heaviside's Expansion Theorem,
Note on 240

Percival, H. S. : Recent Toll Cable Construction and its Problems,
Note on , 83

Perkins, Thomas Nelson, elected Director of American Telephone and

Telegraph Co 170

Perminvar, Magnetic Properties of, by G. W. Elman, Note on 74

Physical Properties and Methods of Test for Some Sheet Non-Ferrous

Metals, by J. R. Townsend and W. A. Straw, Note on 342

Picture, Motion, Theatres, A Sound Projector System for Use in, by

E. O. Scriven, Note on 79

Pictures, Synchronization and Speed Control of Synchronized Sound

by H. M. Stoller, Note on 79

Planning of Telephone Exchange Plants, The, by W. B. Stephenson,

Note on 84

Plant Operation Conference, Pinehurst, N. C, October 22-31, 1928 ... 59
Power, J. R. and H. M. Stoller: A Precision Regulator for Alternating

Voltage, Note on 238

Precision Regulator for Alternating Voltage, A, by H. M. Stoller and

J. R. Power, Note on 238

Predominating Influence of Moisture and Electrolytic Material Upon Tex-
tiles as Insulators, The, by R. R. Williams and E. J. Murphy, Note on 156

Presidents' Conference, Yama Farms, N. Y., October 2-8, 1928 59

Principles of Electric Circuits Applied to Communication, The, by H.

S. Osborne, Note on 74

Problems in Power Line Carrier Telephony and Recent Developments to

Meet Them, by J. D. Sarros and M. V. Wolfe, Note on 84

Program Transmission, Telephone Circuits for, by F. A. Cowan, Note on 334
Purified Textile Insulation for Telephone Central Office Wiring, by H.
H. Glenn and E. B. Wood, Note on 154

Quality, Using Inspection Data to Control, by H. F. Dodge, Note on . . . 158
Quality Control by Sampling, by W. L. Robertson, Note on 84

Radio Communication, Reciprocal Theorems in, by John R. Carson, Note
on 334

Radio Telephony, Short Waves and Long Waves in Transatlantic, by
Ralph Bo%vn 253

12

BELL TELEPHONE QUARTERLY INDEX, VOLUME VIII

PAGE

Rankin, E. S.: Counterless Business Offices (3 illus.) 30

Rates, Seven BilUon Toll (6 illus.) 107

Ray, John H., General Solicitor, American Telephone and Telegraph Co. 86
Reagan, Frank J., Vice President in charge of Publicity and Personnel,

Pacific Telephone and Telegraph Co 93

Receiving System for Long-wave Transatlantic Radio Telephony, The,
by Austin Bailey, S. W. Dean, and W. T. Wintringham, Note on .... 153

Recent Advances in Wax Recording, by H. A. Frederic, Note on 77

Recent Developments in Telephone Construction Practices, by B. S.

Wagner and A. C. Burroway, Note on 338

Recent Toll Cable Construction and its Problems, by H. S. Percival,

Note on 83

Reciprocal Theorems in Radio Communication, by John R. Carson, Note on 334
Reference System, Master, for Telephone Transmission, by W. H. Martin

and C. H. G. Gray, Note on 241

Reflection and Refraction of Electrons by a Crystal of Nickel, by C. J.

Davisson and L. H. Germer, Note on 80

Relation of Nitrogen to Blue Heat Phenomena in Iron and Dispersion-
Hardening in the System Iron-Nitrogen, by R. S. Dean, R. O. Day

and J. L. Gregg, Note on 231

Rhodes, F. L. : 1800-Pair Cable becomes a Bell System Standard (1

iUus.) 25

Richter, F. E. : 1928 — An Economic Review and Outlook 33

Roberts, Owen J., elected Director of American Telephone and Tele-
graph Co 171

Robertson, W. L. : Quality Control by Sampling, Note on 84

Romig, H. G. and H. F. Dodge: A Method of Sampling Inspection,

Note on 339

Rubber Compression Testing Machine, by C. L. Hippensteel, Note on . . . 81

Sarros, J. D. and W. V. Wolfe: Problems in Power Line Carrier Teleph-
ony and Recent Developments to Meet Them, Note on 84

Scattering of Quanta with Diminution of Frequency, by Karl K. Darrow,
Note on 157

Schelleng, J. C. : Note on the Determination of the Ionization in the
Upper Atmosphere, Note on 161

Schultz, A., General Manager (Northern Area), New England Telephone
and Telegraph Co 88

Schumacher, Earle E. and Edward J. Basch: Lead-Tin-Cadmium as a
Substitute for Lead-Tin Wiping Solder, Note on 162

Schumacher, Earle E. and W. C. Ellis: Heat Treatment and Mechanical
Properties of Some Copper-zinc and Copper-tin Alloys Containing
Nickel and Silicon, Note on 231

Schumacher, Earle E. and Lawrence Ferguson: Diffusion of Water
through Rubber, Note on 236

Scriven, E. O. : A Sound Projector System for Use in Motion Picture
Theatres, Note on 79

Secrecy, How Gained by the Inversion of Speech Sounds — New Languages
from Old, by C. R. Keith, Note on 82

Sedam, M. D., Vice President, Chesapeake and Potomac Telephone Co. . . 172

Seljesater, K. S. : Effect of Arsenic on Dispersion-hardenable Lead-
antimony Alloys, Note on 237

Selling by Telephone, The Key-Town Plan of, by Richard Whitcomb
(3 illus.) 47

Seven Billion Toll Rates (6 illus.) 107

13

BELL TELEPHONE QUARTERLY INDEX, VOLUME VIII

PAGE

Shea, T. E. and C. E. Lane: Telephone Transmission Networks. Types
and Problems of Design, Note on 340

Shielding in High-Frequency Measurements, by John G. Ferguson, Note
on 242

Ships at Sea, Extension of Telephone Service to, by Lloyd Espenschied
and William Wilson 175

Short- Wave (New) Telephone Transmitting Center Opens at Lawrence-
ville, N. J 251

Short Waves and Long Waves in Transatlantic Eadio Telephony, by
Ralph Bown 253

Siegmund, H. O. : Aluminum Electrolytic Condenser, Note on 75

Sivian, L. J. : Speech Power and its Measurement, Note on 341

Solder, Lead-Tin-Cadmium as a Substitute for Lead-Tin Wiping, by

Earle E. Schumacher and Edward J. Basch, Note on 162

Solution to a Problem in Diffusion in Employing a Non-Orthogonal

Sine Series, by R. L. Peek, Jr., Note on 338

Sound Projector System for Use in Motion Picture Theatres, A, by E.

O. Scriven, Note on 79

Sound Recording with the Light Valve, by D. MacKenzie, Note on 78

Speech and Hearing, by Harvey Fletcher, Note on 158

Speech Power and its Measurement, by L. J. Sivian, Note on 341

Standard, 1800-Pair Cable becomes a Bell System, by F. L. Rhodes

(1 illus.) 25

Standardization in the Bell System, by H. S. Osborne (2 illus.) 9

Standardization in the Bell System — II, by H. S. Osborne 132

Stannard, A. C, Vice President, Southwestern Bell Telephone Co 91

Static, Some Measurements on the Directional Distribution of, by A. E.
Harper, Note on 336

Statistical Theories of Matter, Radiation and Electricity, by Karl K,
Darrow, Note on 339

Statistics, World 's Telephone (7 illus.) 218

Steinberg, J. C. and H. Fletcher: Articulation Testing Methods, Note on 339
Stephenson, W. B. : The Planning of Telephone Exchange Plants, Note on 84
Stoller, H. M. : Synchronization and Speed Control of Synchronized
Sound Pictures, Note on 79

Stoller, H. M. and J. R. Power: A Precision Regulator for Alternating
Voltage, Note on 238

Stoskopf, L. N.: Long Toll Cable Construction and Maintenance (1
illus.) 115

Straight-Line Depreciation Accounting Practice of Telephone Companies

in the United States, by A. B. Crunden and D. R. Belcher (17 illus.) 259
Straw, W. A. and J. R. Townsend: Physical Properties and Methods of

Test for Some Sheet Non-Ferrous Metals, Note on 342

Study of Weller Brittleness Test for Paper, by R. L. Peck, Jr., and J.

M. Finch, Note on 236

Sullivan, M. R., General Traffic Manager (Northern Calif, and Nevada

Area), Pacific Telephone and Telegraph Co 94

Synchronization and Speed Control of Synchronized Sound Pictures, by

H. M. Stoller, Note on 79

Talking Movie, Technique of the, by Donald MacKenzie, Note on 233

Tasker, C. N., General Plant Manager (Northern Area), New England

Telephone and Telegraph Co 89

Taylor, Myron C, elected Director of American Telephone and Telegraph

Co 171

Technique of the Talking Movie, by Donald MacKenzie, Note on 233

14

BELL TELEPHONE QUARTERLY INDEX, VOLUME VIII

PAGE

Telegraph Transmission, Morse, Quality, Effect of Signal Distortion on,

by J. Herman, Note on l-'JS

Telephone Apparatus Springs. A Review of the Principal Types and

the Properties Desired of These Springs, by J. R. Townsend, Note on 156
Telephone Circuits for Program Transmission, by F. A. Cowan, Note on 334
Telephone Construction Practices, Recent Developments in, by B. S.

Wagner and A. C. Burroway, Note on 338

Telephone Service to Ships at Sea, Extension of, by Lloyd Espenschied

and William Wilson 175

Telephone Statistics, World's (7 illus.) 218

Telephone Transmission, Master Reference System for, by W. H. Martin

and C. H. G. Gray, Note on 241

Telephone Transmission Networks. Types and Problems of Design, by

T. E. Shea and C. E. Lane, Note on 340

Telephone Typewriters and Auxiliary Arrangements, by R. D. Parker

(18 illus.) 181

Telephony, Long Distance, in Europe, by R. W. King (4 illus.) 305

Telephony, The Receiving System for Long Wave Transatlantic Radio,

by Austin Bailey, S. W. Dean and W. T. Wintringham, Note on 153

Telephony, Transatlantic Radio, Short Waves and Long Waves in, by

Ralph Bown 253

Television in Colors (Demonstration — June 27, 1929) 344

Television, Optical Conditions for Direct Scanning in, by Frank Gray

and Herbert E. Ives, Note on 1(50

Test for Polarization of Electron Waves by Reflection, A, by C. J. Davis-
son and L. H. Germer, Note on 23&

Thayer, H. B., received honorary degree from Dartmouth College 252

Toll and Long Distance Rates, New, effective February 1, 1929, repre-
sent third Reduction in 28 Months 163

Toll Cable Construction and its Problems, Recent, by H, S. Percival,

Note on 83

Toll Cable, Installation of New Types of Buried (21 illus.) 296

Toll Cable, Long, Construction and Maintenance, by L. N. Stoskopf (1

illus.) 1^5

Toll Rates, Seven BilUon (6 illus.) 107

Townsend, J. R. : New Specifications for Raw Materials, Note on 162

Townsend, J. R.: Telephone Apparatus Springs. A Review of the Prin-
cipal Types and the Properties Desired of These Springs, Note on 156

Townsend, J. R. and W. A. Straw: Physical Properties and Methods of

Test for Some Sheet Non-Ferrous Metals, Note on 342

Townsend, John R. and Charles H. Greenall: Fatigue Studies of Non-
Ferrous Sheet Metals, Note on 242

Transatlantic Radio Telephony, Short Waves and Long Waves in, by

Ralph Bown 253

Transatlantic Radio Telephony, The Receiving System for Long Wave,

by Austin Bailey, S. W. Dean and W. T. Wintringham, Note on 153

Transatlantic Service Extensions 246

Transatlantic Service Placed on 24-Hour Basis 347

Transatlantic Service to Luxemburg 167

Transatlantic Telephone Service, Further Extensions of (Danzig, Ontario
and Quebec, Spain, Mexico-Europe, Austria, Hungary, Czechoslovakia,

Spanish Morocco in Africa, France) <^4

Transmission Conference, New York City, November 14-22, 1928 61

Transmission, Morse Telegraph, Quality, Effect of Signal Distortion on,

by J. Herman, Note on 15o

Transmission Problems, Some Long Distance, by H. Mouradian, Note on 234

15

BELL TELEPHONE QUARTERLY INDEX, VOLUME VIII

PAGE

Transmission, Telephone, Master Eeference System for, by W. H. Martin

and C. H. G. Gray, Note on 241

Transmission, Telephone, Networks. Types and Problems of Design, by

T. E. Shea and C. E, Lane, Note on 340

Transmission Unit, Decibel — The Name for the, by W. H. Martin, Note on 74
Tuttle, E. B. and W. B. Beals: The Communication System of the Con-

owingo Development, Note on 80

Two-Way Talk between Telephone and Flying Airplanes Demonstrated

by Bell System 245

Typewriters, Telephone, and Auxiliary Arrangements, by E. D. Parker

(18 illus.) 181

Underwood, C. M. and H. M, Larsen: An Electrical Test for Tin Coating

on Copper Wire, Note on 233

United States Steel Corporation, Mr. Gifford elected Director of 73

Using Inspection Data to Control Quality, by H. F. Dodge, Note on 158

Van Cise, Clinton S., Vice President, Bell Telephone Securities Co 173

VanHagan, A, E. : The Dial Office ' ' Cutover " 95

Wagner, B. S. and A. C. Burroway: Eecent Developments in Telephone
Construction Practices, Note on 338

Walker, A. C. and E. J. Murphy: Electrical Conduction in Textiles. Part
I — The Dependence of the Eesistivity of Cotton, Silk and Wool on
Eelative Humidity and Moisture Content, Note on 160

Weather Phenomena, Correlation of Directional Observations of Atmos-
pherics with, by S. W. Dean, Note on 334

Weber, P. J.: An Index of General Business Activity (2 illus.) 124

Wente, E. C. : The Effect of the Acoustics of an Auditorium on the In-
terpretation of Speech, Note on 85

Whitcomb, Eichard: The Key-Town Plan of Selling by Telephone (3 illus.) 47

Wilkinson, E. I. and E. C. Molina: The Frequency Distribution of the
Unknown Mean of a Sampled Universe, Note on 340

Williams, E. E. and E. J. Murphy: The Predominating Influence of
Moisture and Electrolytic Material Upon Textiles as Insulators, Note on 156

Wilson, William and Lloyd Espenschied: Extension of Telephone Service
to Ships at Sea 175

Wintringham, W. T., Austin Bailey and S. W. Dean: The Eeceiving Sys-
tem for Long Wave Transatlantic Eadio Telephony, Note on 153

Wise, W. Howard : Asymptotic Dipole Eadiation Formula, Note on .... 343

Wolfe, W. V. and J. D. Sarros: Problems in Power Line Carrier Telephony
and Eecent Developments to Meet Them, Note on 84

Wood, E. B. and H. H. Glenn: Purified Textile Insulation for Telephone
Central Office Wiring, Note on 154

World's Telephone Statistics (7 illus.) 218

16